Guangxi Liugong Machinery (LiuGong) has announced a RMB 546 million (US$ 85 million) acquisition of 51% of the shares in Shanghai Jintai Engineering Machinery.
The shares were formerly held by Guangxi Liugong Group Corporation and LiuGong said the deal can be traced back to a strategic co-operation agreement signed in May 2011.
Jintai is one of the leading enterprises of piling foundation industry and a pioneer in research and development and sales of underground hydraulic diaphragm wall grabs and rotary drilling rigs in China.
It has developed a full line of piling machinery, with 16 series and more than 70 models.
The acquisition allows LiuGong to add piling machines to its product portfolio, and the company will participate in the research and development, manufacture, sales and services of the piling machines.
It said the acquisition will increase global sales of Jintai products and improve the profitability of both companies.