Recently, the renowned German automotive wiring manufacturer LEONI AG announced that it has signed a legally binding strategic cooperation agreement with China's Luxshare Precision (LUXSHARE-ICT).
On the same day, Stefan Pierer, the former major shareholder of the LEONI Group and prominent Austrian entrepreneur, Klaus Rinnerberger, CEO of the LEONI Group, and Ms. Grace Wang (Wang Laichun), Chairwoman and CEO of Luxshare Precision, jointly signed a share acquisition agreement in Nuremberg, Germany. According to the agreement, Luxshare Precision will acquire 50.1% of LEONI's shares, becoming the company's largest shareholder. Additionally, a joint venture between Luxshare Precision's subsidiary LUXSHARE-ICT and TIME Interconnect Technology, TIME Interconnect Singapore, will acquire 100% of LEONI's Automotive Cable Solutions (ACS) division. The total transaction value is reportedly 525 million euros (approximately 4.1 billion yuan).
Klaus Rinnerberger stated, "Luxshare Precision, as a strong strategic partner, will significantly enhance LEONI's competitiveness in various areas - from expanding the product portfolio and market access to boosting technological capabilities and production."
Ms. Grace Wang added, "We are excited about the potential of this partnership. By integrating our strengths, we will not only expand our global footprint but also drive innovation and deliver greater value to our customers."
The strong ties between LEONI and the European and U.S. automotive industries, combined with Luxshare Precision's influence in China, will create a powerful global platform, enabling both companies to maximize their market potential. Luxshare Precision's expertise in connectors and electronics will further strengthen LEONI's ability to provide integrated solutions through its wiring systems division, benefiting its customers. On the other hand, Luxshare Precision will be able to leverage LEONI's extensive knowledge and leadership in automotive wiring systems, offering valuable support for its overseas expansion and accelerating its internationalization process.
Furthermore, LEONI's operational advantages in Eastern Europe, North Africa, and the Americas, along with Luxshare Precision's extensive production capabilities in China and Vietnam, will allow both companies to flexibly meet regional customer demands while maintaining global competitiveness.
This partnership will also accelerate LEONI Group's financial stability, which had been severely impacted by factors such as the global pandemic, the Russia-Ukraine conflict, and shifts in market dynamics. Stefan Pierer commented, "With Luxshare Precision, we have found the perfect partner to ensure LEONI's long-term success."
