Weichai Power buys $929 million stake in Germany's Kion

Weichai Power, an automotive and equipment manufacturing group in China, has agreed to invest 738 million $929 million for a stake in German industrial truck maker Kion Group, which is already backed by KKR and Goldman Sachs Capital Partners. The transaction is the largest Chinese direct investment in Germany to date and accelerates the Chinese company’s course to gain much-coveted Western industrial know-how and win a foothold in the global market.

Under the agreement, Weichai Power will spend 467 million to acquire a 25% stake in Kion via a capital increase and the remaining 271 million for a 70% stake in Kion’s hydraulics business. Nomura is the sole financial adviser...