Kuka robot manufacturer in Augsburg shows how acquisition by Chinese investors can end

With the resignation of the CEO, there could be huge changes in the Kuka group.Thomson Reuters

In June 2016, the Chinese company Midea bought the robot manufacturer Koka in Augsburg. She bought for 4.6 billion euros about 95% of Koka shares. Today, about two years later, longtime CEO Till Reuter announced in a press release that he would terminate his contract earlier. He led the company for nearly a decade and was instrumental in China's takeover negotiations. By resigning, Midea could increase its influence on coca, feared and at the expense of Germany.

Industrial robots are an important economic sector for Germany

From the beginning, the political and economic takeover was afraid that Chinese companies would have access to information supposed to remain better in German institutions. This includes the latest developments of high-tech robots, as well as customer data integrated into the Koka system – from the German car industry to aircraft manufacturers. With the development of high-tech industrial robots, Koka is an important pioneer in the digitization and automation of the entire German industry.

According to the "Frankfurter Allgemeine Zeitung" ("FAZ"), the resignation of Reuters increases the risk that Chinese investors continue to penetrate the system. There is a parallel between the plastic machine manufacturer Krauss Maffei, which they tried under the pretext of transferring it to the Chinese stock exchange, in a subsidiary of the Chinese chemical group ChemChina.

Will China completely take over the robot manufacturer?

According to "FAZ", the first signs could already be observed in Koka that a similar strategy could be taken here. Thus, many of Midea's promises to German workers and unions at the beginning of the takeover gradually returned over time. According to "FAZ", it seems that the influence of the Chinese in the group has increased and that new steps towards integration are being pursued.

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Andy Gu, chairman of Kuka and chief executive officer of Midea, said in a statement: "Kuka is well positioned to regain sustainable growth by taking advantage of the growing demand for intelligent robotics, and strengthens the Chinese market." the Chinese market continues to play a major role for Kuka is certainly certain.

Peter Mohnen and Andreas Pabst will badume the central role of Reuter. All contracts with existing investors, including Kuka protection agreements for the protection of intellectual property in 2016, therefore remain in force.