Shanghai (Gasgoo)- On February 7, German automotive parts supplier MAHLE announced plans to sell its 40% minority stake in Langfang Kokusan Electric Co., Ltd, (called "Langfang Kokusan Electric" for short) a China-based manufacturer of electric motors and electrical components for automotive and recreational equipment.
As part of the transaction, Langfang Jinrun Technology Group Co., Ltd., an existing shareholder of Langfang Kokusan Electric, will acquire a 28.5% stake, while Langfang State-Owned Asset Business Co., Ltd. will take over the remaining 11.5%. The three parties signed a transfer agreement on January 27.
Langfang Kokusan Electric specializes in manufacturing electric motors, electric generators, and other electrical products for the automotive and leisure equipment. The transaction is expected to be completed in the first half of 2025.
MAHLE acquired the 40% financial investment in Langfang Kokusan Electric Co., Ltd. in 2015. Co-shareholders have been Langfang Jinrun Technology Group Co., Ltd., China (27.5%), Langfang State-owned Assets Business Co., Ltd., China (22.5%) and Okaya & Co., Ltd., Japan (10%).
"In light of being a minority shareholding, we decided to sell the investment as part of our ongoing review of the long-term portfolio management and strategic positioning of MAHLE", said Markus Kapaun, Member of the MAHLE Group Management Board and CFO. "Selling our shares to the two Chinese co-shareholders will allow Langfang Kokusan Electric to continue its business in China with great dedication and lead it into a successful future."
Regarding recent development in the Chinese market, on January 15, 2025, MAHLE Holding (China) Co., Ltd. and the Wuhan Economic and Technological Development Zone signed an agreement, under which the duo aims to deepen collaboration in new energy and intelligent connected vehicles, photovoltaics technology, and hydrogen internal combustion engines.
MAHLE also plans to increase its investment in Wuhan city, with a focus on R&D of photovoltaic thermoelectric systems and hydrogen internal combustion engines. This move underscores the company’s commitment to the new energy vehicle sector and its in-depth collaboration with Chinese automakers.
