September 20, 2024 – On September 17th, Leoni AG, a renowned manufacturer of automotive wire harnesses, signed a share purchase agreement with Chinese company Luxshare Precision. Under the terms of the agreement, Luxshare Precision will acquire 50.1% of Leoni Group’s shares and 100% of its wholly-owned subsidiary, Leoni Kabel (hereinafter referred to as “Leoni K”), for a total of €525.41 million.
Leoni, a fully-owned subsidiary of L2-Beteiligungs with its registered office in Nuremberg, Germany, primarily operates two core businesses: the Automotive Cables Segment (ACS) managed by Leoni K, and the Wire Systems Division (WSD) managed by another wholly-owned subsidiary, Leoni Bordnetze Systeme (hereinafter referred to as “Leoni B”). To ensure a smooth transition, four of Leoni B’s subsidiaries will be transferred to Leoni K before the share transfer is completed.
According to the agreement, Luxshare Precision, through its subsidiaries, will acquire 100% of Leoni K’s shares for €320 million and 50.1% of Leoni’s shares for €205.41 million. The remaining 49.9% of Leoni’s shares will continue to be held by L2-Beteiligungs. Following the transaction, both Leoni and Leoni K will be included in Luxshare Precision’s consolidated financial statements.
This acquisition marks another significant step in Luxshare Precision’s expansion into the automotive industry. As a key supplier to Apple, Luxshare Precision has been increasingly investing in the automotive sector in recent years, seeking new growth opportunities beyond its consumer electronics business. The company has set a long-term goal to become a leading Tier 1 automotive component supplier globally within three five-year periods.
Luxshare Precision stated that this acquisition will enable the company and Leoni to achieve resource sharing, complementary advantages, and strategic synergies. It will rapidly establish the company’s differentiated competitive advantages in the global automotive wire harness market, providing more convenient and efficient vertical integration services for Chinese automotive companies expanding overseas and traditional overseas automotive manufacturers.
