Photo: Courtesy of Scharf AG

East China’s Shandong-based Yankuang Energy Group Company Limited (Yankuang Energy) announced on Friday that the company has completed the transaction acquiring a 52.66 percent stake of listed German mining equipment manufacturer SMT Scharf AG (Scharf AG), a latest demonstration of Chinese energy enterprises’ overseas expansion. 

The acquisition will help Yankuang Energy to enter the European market facilitated with Scharf AG’s international service network, enhancing its competitiveness and influence in the European market, and providing more advanced solutions to global energy and mineral equipment sectors, Yankuang Energy told the Global Times on Friday. 

Yankuang Energy announced the acquisition on March 1, 2024, with a payment of 32.17 million euros ($35.89 million) to acquire 52.66 percent stake of the German company. At present, the acquired stake has been transferred to Yankuang Energy, and personnel recommended by Yankuang Energy have become members of the supervisory board of Scharf AG.

Scharf AG is primarily engaged in the manufacturing of transportation and infrastructure equipment for underground mining and tunnel construction sites. Its products have been sold to China, Poland, South Africa, the US and Germany, and about 34 percent of installed monorails worldwide are produced by the company. In addition, the company’s market share accounts for about 40 precent in the Chinese market, said a statement from Yankuang Energy.  

Photo: Courtesy of Scharf AG

Yankuang Energy said that it will have its own underground mining equipment industrial chain thanks to the acquisition, further reducing the company’s equipment purchasing costs and accelerating intelligent manufacturing upgrade.

According to the relevant provisions of the agreement, Scharf AG will take actions to uplisting at the Frankfurt Stock Exchange from the Munich Stock Exchange after the completion of this transaction. The uplisting will further improve Scharf AG’s stock liquidity, and expand its financing channels.

Yankuang Energy is the only large-scale energy enterprise in China that has listed platforms in stock exchanges in Shanghai, Hong Kong, New York, and Australia. The transaction will bring more growth opportunities for Yankuang Energy in the global market, and strengthen the corporate image and market position. 

Global Times