Weichai Power: Foreign Capital intends to transfer 50% of Deutz

A few days ago, Weichai Power responded to investors' questions and stated that in light of the commitments of the actual controllers to avoid competition with the industry, relevant parties have already agreed with foreign investors on preliminary plans to transfer 50% of Weichai Deutz to foreign investors. , but the relevant parties, such as the specific transferee and the terms of the agreement, are still further discussing.

Prior to this, Weichai Power issued an announcement on September 13, 2011 regarding Shandong Heavy Industry's further avoidance of competition with the industry. As Weichai Power and Weichai Deutz may have business competition, Shandong Heavy Industries has committed to determine Weichai Power as Shandong. Heavy industry will continue to operate and integrate engine operation and integration for engine construction machinery. We also urge Weichai Group to set up a special working group to coordinate with Deutz and Weichai Power in Germany to negotiate further efforts to avoid Weichai Deutz and Weichai. The related restructuring and integration plan that may generate business competition in the future and promised to complete within 36 months.

Shandong Heavy Industry is affiliated with the Shandong Provincial SASAC, and it is the shareholder of Weichai Group and is the actual controller of Weichai Power. Weichai Deutz is a joint venture established by Weichai Group and Germany Deutz which each invests 50% and mainly produces diesel engines.

Weichai Power stated that the company will actively negotiate with relevant parties to promote the completion of the matter as soon as possible and effectively safeguard the interests of the company and small and medium shareholders. Weichai Power is principally engaged in the research, production and sale of engines and their components, heavy-duty vehicles, heavy-duty vehicle axles, transmissions and other auto parts.

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