MAHLE to sell its 40% minority share in Langfang Kokusan Electric Co., Ltd.

• 28.5% to be acquired by co-shareholder Langfang Jinrun Technology Group Co., Ltd. and 11.5% by co-shareholder Langfang State-owned Assets Business Co., Ltd.
• MAHLE and the purchasing parties signed a purchase agreement on January 27, 2025
• Transaction is subject to customary regulatory approvals and expected to be completed in the first half of 2025

German automotive supplier MAHLE is to sell its 40% minority share in Langfang Kokusan Electric Co., Ltd.– with 28.5% to be acquired by co-shareholder Langfang Jinrun Technology Group Co., Ltd. and 11.5% by co-shareholder Langfang State-owned Assets Business Co., Ltd. The three parties have signed a contract to this effect on January 27, 2025. Langfang Kokusan Electric Co., Ltd. produces electric motors, generators and other electrical products for the automotive and leisure equipment industry. The transaction is subject to customary regulatory approvals and expected to be completed in the first half of 2025.

MAHLE acquired the 40% financial investment in Langfang Kokusan Electric Co., Ltd. in 2015. Co-shareholders have been Langfang GoldRain Technology Group Co., Ltd., China (27.5%), Langfang State-owned Assets Business Co., Ltd., China (22.5%) and Okaya & Co., Ltd., Japan (10%).

“In light of being a minority shareholding we decided to sell the investment as part of our ongoing review of the long-term portfolio management and strategic positioning of MAHLE”, said Markus Kapaun, Member of the MAHLE Group Management Board and CFO. “Selling our shares to the two Chinese co-shareholders will allow Langfang Kokusan Electric to continue its business in China with great dedication and lead it into a successful future.”

MAHLEs electrification strategy for China will continue unaffected by this transaction.