MAHLE to Divest Minority Stake in Langfang Kokusan Electric as Part of Portfolio Optimization

MAHLE to Divest Minority Stake in Langfang Kokusan Electric as Part of Portfolio Optimization

(IN BRIEF) MAHLE has signed an agreement to sell its 40% minority stake in Langfang Kokusan Electric Co., Ltd. to its co-shareholders. Langfang Jinrun Technology Group Co., Ltd. will acquire 28.5% of the stake, and Langfang State-owned Assets Business Co., Ltd. will acquire the remaining 11.5%. The deal, signed on January 27, 2025, is expected to close in the first half of 2025, pending regulatory approval. MAHLE, which originally acquired its shares in Langfang Kokusan Electric in 2015, decided to divest as part of its ongoing portfolio review. Despite this transaction, MAHLE’s electrification strategy in China remains unchanged.

(PRESS RELEASE) STUTTGART, 7-Feb-2025 — /EuropaWire/ —  MAHLE GmbH, one of the largest automotive suppliers worldwide, has entered into an agreement to sell its 40% minority share in Langfang Kokusan Electric Co., Ltd., with the shares being split between two co-shareholders. Langfang Jinrun Technology Group Co., Ltd. will acquire 28.5% of the stake, while Langfang State-owned Assets Business Co., Ltd. will acquire the remaining 11.5%. The purchase agreement was signed on January 27, 2025, and the transaction is expected to be finalized in the first half of 2025, pending regulatory approvals.

Langfang Kokusan Electric, a manufacturer of electric motors, generators, and other electrical products for the automotive and leisure equipment industries, has been a key player in the electric vehicle and power generation sectors. MAHLE originally acquired its 40% stake in the company in 2015, alongside co-shareholders Langfang GoldRain Technology Group Co., Ltd., China (27.5%), Langfang State-owned Assets Business Co., Ltd. (22.5%), and Okaya & Co., Ltd., Japan (10%).

Markus Kapaun, Member of the MAHLE Group Management Board and CFO, commented on the decision, saying, “As a minority shareholder, we have decided to sell our investment as part of our ongoing portfolio review and to ensure the strategic alignment of MAHLE’s long-term objectives. By selling to our Chinese co-shareholders, we believe Langfang Kokusan Electric will continue its operations with great focus and lead the business to future success.”

Despite the sale, MAHLE’s electrification strategy in China remains unaffected, as the company continues to prioritize its ongoing commitment to the country’s growing electric vehicle and technology sectors.

Media contacts:

Lane Lee
Communications China
+86 21 51 36-5022

Manuela Höhne
Director MAHLE Communications
+49 173 6180956

SOURCE: MAHLE GmbH