Luxshare to acquire 51% stake in German wire harness supplier Leoni

Chinese electronics supplier Luxshare Precision Industry has signed an agreement with Leoni to purchase a 51 percent interest in the German wire harness maker and a 100 percent interest in Leoni’s automotive cable unit.

The €525 million ($588 million) deal will allow Luxshare to build competitive scale in automotive wire harnesses and provide integrated services for clients, Luxshare said on Sept. 19.
 
Its “operational strengths in Eastern Europe, North Africa and the Americas, alongside Luxshare’s extensive production capabilities in China and Vietnam, will enable both partners to meet regional customer needs with flexibility while maintaining global competitiveness,” Leoni said.

The deal, which must be approved by regulators, will also help the company regain financial stability, Leoni added.