German government joins opposition to Midea’s bid for German robot maker

According to Bloomberg, the German government is further involved in efforts to oppose a Chinese bid for robot maker Kuka on the eve of German Chancellor Angela Merkel’s visit to China next week.

Conflict over the deal has escalated ahead of Merkel’s arrival in Beijing on Sunday. This is Merkel’s ninth visit to China since she became chancellor and will be accompanied by about 20 executives of German companies. The trip to China differs from previous years celebrating the trade relations between the two countries, as competition between the two countries intensifies and Merkel faces growing domestic pressure to protect Kuka.Merkel sees KUKA as a model company combining digital technology and Germanindustrystrength.

German government officials in Berlin have met KUKA Chief Executive Till Reuter to discuss a 4.6 billion euro ($5.2 billion) bid for Midea, based in Foshan, Guangdong, last month, according to people familiar with Merkel’s views on the matter. ) possible options after bidding for KUKA. Merkel and Siemens Chief Executive Joe Kaeser have discussed Kuka in recent days, another person familiar with the matter said.

“China and Germany are like-minded countries, and both are very focused on manufacturing,” Hans Kundnani, a Berlin-based researcher at the German Marshall Fund, said in an interview. “In similar high-end manufacturing areas, the two countries are increasingly competing.”

Midea is China’s largest home appliance manufacturer. Midea’s bid for Kuka has exposed Germany’s anxiety over the long-term investment goals of Chinese-backed investors. While Germany wants to avoid a trade war with China, the incident acts as a wake-up call, further prompting Merkel to demand that China create a level playing field for foreign investors or face the prospect of a trade war with China, the people said, speaking on condition of anonymity because the talks are private. Risk of constraints on European investment.

Source of this article by Zhao Shun: NetEase Finance