THE head of forklift maker Kion Group AG has some advice for Germany: Don’t judge potential acquirers by their passports.

    Amid political hand-wringing over Chinese takeovers of German firms, CEO Gordon Riske said the nationality of an investor shouldn’t determine how an approach is viewed. Kion has benefited from shareholder Weichai Power Co. of China, which holds a 40 percent stake, he said.

    “The Chinese typically take a very long view of things,” Detroit-born Riske said. This allows a lot of businesses to “make healthier decisions” about their strategy and endure less quarterly pressure for results.

    China’s quest for German engineering prowess, displayed in a raft of acquisitions targeting small and medium-sized businesses known as Mittelstand, has sparked political concerns about foreign ownership.

    Riske, 59, is himself no stranger to international takeovers after completing a US$2.1 billion acquisition of U.S. warehouse outfitting company Dematic the week before Donald Trump’s Nov. 8 presidential election victory.

    “If you neglect 25 percent of the market, chances are over time you’re going to be wiped away,” Riske said, referring to the portion of the global forklift market located in China. Diesel engine maker Weichai has boosted Kion’s access to the Chinese market, he said.

    Chinese companies have announced or completed German acquisitions worth a record 11.3 billion euros (US$12 billion) this year, almost eight times the level of 2015. Last month, the German Government started reviews of two of the planned takeovers, one for semi-conductor equipment maker Aixtron SE and the other for a division of Osram Licht AG. Tensions among Chancellor Angela Merkel’s ministers were triggered by this year’s purchase by China’s Midea Group Co. of robot maker Kuka AG.

    For Kion, a maker of warehouse equipment ranging from traditional tools like forklifts to cutting edge self-driving vehicles, and other German companies, the sheer size of the Chinese market makes alliances crucial for business development, Riske said.

    Deals are also important for German exports, something Economy Minister Sigmar Gabriel understands “better than many others in the government,” he said.

    Weichai bought its original 25 percent stake in Wiesbaden, Germany-based Kion from KKR & Co. and Goldman Sachs Group Inc. just before the company was listed in 2013. Riske took the helm shortly after German industrial gas giant Linde AG sold its forklift assets to the buyout pair in 2006 for 4 billion euros.

    (SD-Agencies)