On July 8, Xugong Machinery (000425.SZ) issued an announcement that the company received the "About Approval of Xugong Group Construction Machinery Co., Ltd.'s issuance of shares to Xuzhou Construction Machinery Group Co., Ltd. and other companies to absorb and merge Xugong Group Construction Machinery" issued by China Securities Regulatory Commission. Co., Ltd.'s Reply", approved the company to issue shares to absorb and merge XCMG Construction Machinery Co., Ltd.
According to the plan, XCMG Machinery will absorb and merge with the related party XCMG Limited at a price of 38.686 billion yuan.
After the transaction is completed, XCMG's excavation machinery, concrete machinery, mining machinery, tower cranes and other assets will be injected into the listed company as a whole.
The overall listing was approved by the China Securities Regulatory Commission, marking the substantial success of the reorganization.
This transaction is the largest merger and acquisition transaction in China's equipment manufacturing industry so far, and a model of reform and innovation for state-owned enterprises to embrace the capital market; this transaction is also a continuation of XCMG's limited mixed ownership reform, and an important manifestation of continuing to deepen the reform of state-owned enterprises.
After the overall listing, XCMG Machinery (000425.SZ) will focus more on construction machinery and core components, become more market-oriented, and show a report to the world to realize the great dream of reaching the top of Mount Everest.