China's latest acquisition: Sany buys Germany's Putzmeister

China’s construction-equipment maker Sany Heavy Industry has agreed to buy German concrete pump maker Putzmeister in the biggest Chinese-German transaction to date.

Sources say Sany and Chinese private equity company Citic PE Advisors plan to buy Putzmeister for slightly more than 500 million $660 million, though neither party is disclosing the actual amount. The proceeds will go to two charitable foundations Karl Schlecht Gemeinnuetzige Stiftung KSG and Karl Schlecht Familienstiftung KSF established by Karl Schlecht, the company’s 79-year-old founder.

This is the latest in a string of outbound acquisitions that reveal China’s ambition to build bigger and stronger companies. Last year, Chinese companies spent $56 billion...