Sumitomo/Demag transfer could happen as early as March 3
Tokyo-based Sumitomo Heavy Industries Ltd has provided additional details on its plan to acquire Germany's Demag Pl...
Tokyo-based Sumitomo Heavy Industries Ltd has provided additional details on its plan to acquire Germany’s Demag Plastics Group. In a new statement, Sumitomo has indicated that a stock transfer could happen on March 3.
Sumitomo has not indicated what it will pay to acquire Demag, but a report by the Nikkei business daily in January said that the company may spend 10 billion yen (US$91.92 million) to buy the company.
The speculation followed on the heels of a joint statement issued by both companies confirming that “talks regarding the acquisition of Demag by Sumitomo have occurred.”
According to Nikkei, the acquisition would allow Sumitomo to leverage Demag’s brand name and production facilities in China and India, boosting its capacity to sell products to emerging markets.
Demag is currently owned by Madison Capital Partners, a private equity investment company. The injection molding machinery manufacturer was acquired with the rest of the Mannesmann Plastics Machinery (MPM) in 2006.