Auto supplier: Leoni goes to Chinese investor

Chinese company Hengtong to take over Leoni

The German auto supplier Leoni has been bought by the Chinese company Hengtong. The purchase price is around 100 million euros. Hengtong is the world’s largest supplier of optical fiber cables. Leoni is a global automotive supplier with around 95,000 employees. The acquisition is subject to approval by the relevant antitrust authorities.

Advantages for both companies

The acquisition offers advantages for both companies. Hengtong gains access to Leoni’s automotive expertise and global customer base. Leoni, in turn, benefits from Hengtong’s strong position in the Chinese market and its expertise in optical fiber technology.

The acquisition is part of the Chinese government’s strategy to become a leader in the automotive industry. The Chinese government is investing heavily in the development of electric vehicles and autonomous driving. Hengtong is one of the companies that benefit from this government support.

Challenges for Leoni

The acquisition also poses challenges for Leoni. The company has been struggling with financial problems for some time. In 2020, Leoni had to file for protective shield proceedings. The acquisition by Hengtong could help Leoni to overcome its financial problems. However, it is unclear whether Hengtong will be able to turn Leoni around.

Conclusion

The acquisition of Leoni by Hengtong is a major development in the automotive industry. The acquisition gives Hengtong access to Leoni’s automotive expertise and global customer base. Leoni, in turn, benefits from Hengtong’s strong position in the Chinese market and its expertise in optical fiber technology. The acquisition is part of the Chinese government’s strategy to become a leader in the automotive industry. It remains to be seen whether Hengtong will be able to turn Leoni around.