China's Midea buys 25.1% stake in Germany's Kuka for US$1.3b

Frankfurt

CHINA'S Midea Group Co will become the largest shareholder of Kuka AG after buying a 25.1 per cent stake in the robot-making company from Voith GmbH as part of a deal that has been closely scrutinised by German politicians.

Voith will get about 1.2 billion euros ($1.79 billion) by selling its stake, the closely held German company said Sunday in a statement from Heidenheim, Germany. Kuka chief executive officer Till Reuter backed the deal after Midea offered assurances that jobs and plants will be protected until the end of 2023.