China Youngman Automobile Group Co., a home-grown car maker, plans to acquire a 75% stake in German coach manufacturer Viseon Bus GmbH, in its latest attempt to expand globally after failing to purchase Saab Automobile last year.
The deal, worth around €10 million ($12.3 million), has been approved by the Zhejiang Provincial Development and Reform Commission, the economic planner in coastal Zhejiang province where Youngman is headquartered, the government agency said in a statement dated July 24 on its website.
The statement didn’t say when the deal is expected to be completed.
Youngman, China’s largest passenger coach maker with an 80% market share, will finance the acquisition with its working capital, the statement said.
Officials at China Youngman and Viseon Bus weren’t immediately available for comment.
Youngman will buy the 75% stake from Viseon’s two shareholders, JR Bus Consult & Production GmbH and BartConsult Kereskedelmi, which own stakes of 61% and 39% respectively, according to the statement. There was no mention of ownership structure after the deal.
Viseon Bus, based in Pilsting, Bavaria, was established in 2008 and has been manufacturing commercial vehicles under the Neoplan brand. Youngman has cooperated with Neoplan Bus GmbH since the late 1990s, and the Chinese car maker produces buses and coaches under the Neoplan brand, according to Youngman’s website.
As of Dec. 31, Viseon Bus had net assets of €3.83 million and posted a net loss of €2.26 million in 2011, data from Viseon showed.
In October, Youngman’s subsidiary Zhejiang Youngman Lotus Automobile Co. and Chinese car sales company Pang Da Automobile Trade Co. agreed to buy loss-making Saab Automobile for €100 million but had to call off the deal after General Motors Co., the former owner of Saab, refused to go with the deal.