Kaper Machinenbau and Tian Fu Tools: Take-over with Chinese Characteristics (A)
Code
CC-311-014
Date
2011
Industry
Industrial Products, Tools & Machinery
Length
6P
Author(s)
Nandani Lynton
Language
English
Company
Kaper Machinenbau
Source
CEIBS
Discipline
Strategy & General Management
Key Words
Emerging Multinationals, Chinese Management, German Management, Sino-European M&A, Cross-Border Business, Machine Building Industry
Description
Five years previously, Tian Fu Tools (TFT), a Chinese state owned machinery enterprise bought the Stuttgart-based mid-sized lathe and machinery building company, Kaper Maschinenbau. Enjoying a rare day off, Heinrich Baumann, CEO of Kaper, is interrupted by a phone call from the TFT GM, Zhang Jian, stating that the TFT board has decided to move production of a further 3 Kaper machines to Tianjin, as well as moving large parts of the Kaper research facilities to China. Baumann is dismayed to be caught off-guard and not involved in discussing such a decision. He tries to make sense of Zhang Jian’s behaviour and wonders how to present this change credibly to the union and supervisory board. Baumann begins strategizing ways to protect the company from their Chinese owners.
Case Sample
