Robot maker Kuka said Tuesday it will maintain its facilities and workers in Germany after forging an agreement with Chinese buyer Midea Group.
The agreement with the Chinese appliance maker ensures domestic sites and jobs are retained through the end of 2023. The management team will stay on, and the confidential data of Kuka customers and suppliers will be protected, with Midea not allowed access. Kuka will also remain listed on the German stock market.
Midea on June 16 launched a one-month tender offer for Kuka, with the aim of buying all of its outstanding shares. German politicians and some business partners have expressed concern over a technology outflow that could result from the acquisition.
The two companies seek to smooth over the acquisition process going forward with this agreement. Citing the deal, Kuka’s executive and supervisory boards urged shareholders to accept Midea’s proposal. They also said the offer price of 115 euros ($127) per share was appropriate.