Doosan Bobcat is pushing to acquire Wacker Neuson, a small construction equipment company headquartered in Germany.
On the 2nd, according to a Wacker Neuson filing, Doosan Bobcat is reviewing a plan to acquire about 63% equity for management control from major shareholders and secure the remaining equity through a tender offer.
The two sides have been in long-term talks for more than a year and are said to be on the verge of signing the final transaction.
Wacker Neuson, listed on the Frankfurt Stock Exchange, has a market capitalization of 1.3 billion euros (about 2.2 trillion won). However, considering the management control premium, the industry expects the acquisition size for 100% equity to reach up to 5.1 trillion won.
Founded in 1848, Wacker Neuson is a construction equipment specialist manufacturer headquartered in Munich, Germany. This year's expected revenue is 2.3 billion euros. Wacker Neuson is known to operate direct sales and service organizations and a sales network in more than 35 countries worldwide.
Earlier, on Oct., Doosan Bobcat established a local subsidiary in Germany and laid out a strategy to foster Europe as a core market. Europe has strong demand for small construction equipment due to many small-scale jobs such as aging infrastructure repairs, dwelling remodeling, landscaping, and road maintenance.
Doosan Bobcat is said to diversify its sales structure, which is concentrated in North America (about 70%), through this acquisition.