Midea Announces Completion of 100% Acquisition of KUKA

On the evening of November 15, Midea Group disclosed the progress regarding its comprehensive acquisition of KUKA Aktiengesellschaft shares and its privatization.

As of now, Midea Electric, a wholly-owned subsidiary, has completed the acquisition of all KUKA shares held by minority shareholders. Midea Electric has also made the payment for the aforementioned shares to the minority shareholders at a price of 80.77 euros per share.

Following the completion of the acquisition, Midea Electric indirectly holds a total of 100% of KUKA's equity through its wholly-owned overseas subsidiary. This acquisition process began in 2016 when Midea acquired nearly 95% of KUKA's shares, becoming its largest single shareholder.

In November 2021, Midea Group issued an announcement stating its intention to fully acquire KUKA's equity and privatize it through a wholly-owned subsidiary.

Since being acquired by Midea, KUKA's performance has been noteworthy. In Midea's Q3 report this year, KUKA China reported revenue of 645 million euros (approximately 4.6 billion RMB), a year-on-year increase of 59.1%, accounting for 23% of KUKA's total revenue. Its order intake grew by 92.8%. For the full year 2022, KUKA is projected to achieve revenue of about 3.6 billion euros, representing a year-on-year growth of over 10%, with its EBIT net profit margin expected to recover to around 3%.

After entering the Chinese market under the Midea name, KUKA has continuously integrated German tradition with Chinese innovation, achieving integration of production, sales, and R&D, and consistently developing localized products. Recently, at the 2022 KUKA New Product Launch on November 8th, KUKA officially unveiled several new products serving areas such as electric vehicle battery production, photovoltaic equipment manufacturing, food and pharmaceuticals, and electronics.

Currently, approximately 50% of KUKA's production is completed in China. Beyond its traditional automotive robotics business, KUKA is intensifying efforts to develop non-automotive sectors, including mobile robots and service robots. It is projected that by 2025, KUKA's revenue share in the Chinese market could reach over 30%, with a net profit margin potentially around 10%.