Chinese auto firm Ningbo Jifeng has settled a deal to buy German rival Grammer for $893 million, in the latest example of Chinese money targeting European industry.
The bid was accepted on Tuesday for around 61.25 euros per share for the 74% stake of Grammer that Ningbo Jifeng did not already own. Shares of the German firm jumped 19% on the announcement.
The German government has been increasingly sceptical of Chinese takeovers of its domestic businesses, particularly in areas that involve sensitive technology. Earlier this year carmaker Daimler sold a $9 billion stake to rival Zhejiang Geely in an unexpected move. Sources told Caixin that Ningbo offered Grammer employees at least 7.5 years of employment after the takeover as part of the proposal, to sweeten any opposing parties.