MAHLE Plans to Sell Minority Stake in Langfang Kokusan Electric Co., Ltd.
German automotive parts supplier MAHLE recently announced its plans to sell its 40% minority stake in Langfang Kokusan Electric Co., Ltd., a China-based manufacturer of electric motors and electrical components for automotive and recreational equipment. The transaction is set to be completed in the first half of 2025.
Langfang Kokusan Electric specializes in manufacturing electric motors, electric generators, and other electrical products for the automotive and leisure equipment industry. As part of the deal, Langfang Jinrun Technology Group Co., Ltd. will acquire a 28.5% stake, while Langfang State-Owned Asset Business Co., Ltd. will take over the remaining 11.5%. The transfer agreement was signed by the three parties on January 27.
MAHLE had acquired the 40% financial investment in Langfang Kokusan Electric Co., Ltd. back in 2015. The co-shareholders at the time were Langfang Jinrun Technology Group Co., Ltd. (27.5%), Langfang State-owned Assets Business Co., Ltd. (22.5%), and Okaya & Co., Ltd. (10%).
Markus Kapaun, Member of the MAHLE Group Management Board and CFO, explained the decision to sell the investment, stating, “In light of being a minority shareholding, we decided to sell the investment as part of our ongoing review of long-term portfolio management and strategic positioning of MAHLE. 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.”
In other recent developments in the Chinese market, MAHLE Holding (China) Co., Ltd. signed an agreement with the Wuhan Economic and Technological Development Zone on January 15, 2025, to deepen collaboration in new energy and intelligent connected vehicles, photovoltaics technology, and hydrogen internal combustion engines. The company also plans to increase its investment in Wuhan city, focusing on R&D of photovoltaic thermoelectric systems and hydrogen internal combustion engines, showcasing its commitment to the new energy vehicle sector and collaboration with Chinese automakers.
Photo credit: MAHLE
