(Yicai Global) March 29 -- Bohai Automotive Systems Co. plans to invest EUR61.5 million (USD76 million) in Germany's Trimet Automotive Holding GmbH as it looks to take a larger share in the lightweight parts market.
Shandong-based Bohai signed an agreement to take over Trimet Aluminium SE's 75-percent stake in the company, the buyer said in a statement. The Chinese firm will set up a vessel in Europe to handle the acquisition.
Trimet, one of Germany's leading aluminum producers, spun off its auto unit in 2016 to focus on lightweight alloy components for car engines, chassis and body parts. The subsidiary is a world-leading supplier and has long-term deals with the likes of Daimler AG, best known for the Mercedes-Benz brand, Bayerische Motoren Werke AG (BMW) and the world's largest carmaker Volkswagen AG.
Bohai has approved a private issuance of its A-shares to fund the deal, and hopes to raise almost CNY1.7 billion (USD270 million) in total. Around CNY478 million will go toward buying Trimet Automotive, and the remainder will be used to supplement operations and for other projects, the statement said.