MIDEA Group Co. will become the largest shareholder of Kuka AG after buying a 25.1 percent stake in the robot-making company from Voith GmbH as part of a deal that has been closely scrutinized by German politicians.

    Voith will get about 1.2 billion euros (US$1.3 billion) by selling its stake, the closely held German company said Sunday in a statement from Heidenheim, Germany. Kuka Chief Executive Officer Till Reuter backed the deal after Midea offered assurances that jobs and plants will be protected until the end of 2023.

    The prospect of Kuka being partly owned by a Chinese buyer triggered concerns from leading politicians in Chancellor Angela Merkel’s government, with Economy Minister Sigmar Gabriel leading a charge to find an alternative bid from a European suitor, a foray that so far failed to produce any offers.

    The offer from Midea, China’s biggest appliance manufacturer, is open for four weeks from when it was published June 16.

    Midea, which said May 18 it had a 13.5 percent stake in Kuka, is offering 115 euros a share for Kuka, contingent on it being able to increase its stake to at least 30 percent, the Foshan, China-based company said last month. It has pledged to help the company beat a 2020 sales target by expanding its product offerings to take advantage of the Chinese market as well as expanding into household robots.

    Midea rose 0.9 percent to 24.3 yuan as of 9:48 a.m. in Shenzhen trading Monday. The shares have jumped 13 percent since June 1, when they resumed trading. Kuka is up 26 percent since the deal with Midea was announced May 18, and last traded at 106.65 euros per share in Germany.

    (SD-Agencies)