Schwing America filed for bankruptcy in 2010
Chinese manufacturer XCMG has continued its takeover of Schwing Group, increasing its share holding in the German concrete specialist to 52%.
News that XCMG was prepared to acquire a majority stake in Schwing first surfaced at Intermat in April. Schwing, whose US susbsidary Schwing America filed for Chapter 10 bankruptcy in 2010, had been considered vulnerable to a takeover for a number of years.
Prior to XCMG’s share purchase, speculation on potential buyers included fellow German manufacturer Putzmeister, despite likely complications with the deal meeting German monopoly regulation. With Chinese giant Sany subsequently taking over control of Putzmeister from owner Karl Schlecht, XCMG’s move is percieved as a defensive measure as well as an opportunity to capatalise on a favourable share price for a firm that has struggled to come to terms with the downturn.
XCMG will now look to broaden Schwing’s brand and technology in Asia, particularly in China, which buys two-thirds of the world’s concrete pumps.
XCMG chairman Wang Min has previously stated that he wishes to make the company a world class enterprise and is quoted in the Chinese media as saying that “the price is not too high” for Schwing.