Wacker Neuson said on Tuesday that South Korea’s Doosan Bobcat was in talks to buy a majority stake in the German construction equipment maker.
Doosan Bobcat, a unit of Korean conglomerate Doosan, is in “advanced discussions” over an acquisition of around 63% of Wacker Neuson’s shares from major shareholders and a launch of a public all-cash takeover offer to remaining shareholders, the German company said.
Doosan Bobcat on Wednesday said in a regulatory filing that it is reviewing an acquisition of Wacker Neuson, but nothing had been decided at this time.
The South Korean construction equipment maker said it would provide an updated disclosure within a month or when details were confirmed.
The transaction value for the management-control stake is expected to reach the 3 trillion won ($2.05 billion) range, South Korea’s Maeil Business Newspaper reported, citing unnamed investment-banking industry sources.
Doosan Bobcat shares jumped as much as 10.1% in morning trade, outperforming the benchmark KOSPI’s 0.3% rise, with analysts saying the deal would help the company expand its foothold in the European market.
Shares in Wacker Neuson closed up 28.4%, their biggest one-day gain ever, after the company confirmed Doosan Bobcat’s acquisition interest.
Source: Reuters.com