German robot maker Kuka’s CEO welcomes Midea bid

Products of Midea are seen at a shop in Beijing, China, May 18, 2016.

Reuters/Kim Kyung-Hoon

The chief executive of German industrial robot maker Kuka (KU2G.DE) said on Friday he welcomed an impending 4.5 billion- euro ($5 billion) takeover bid from Chinese home appliance maker Midea (000333.SZ).

“The bid, as it has been announced, can support our strategy,” Till Reuters told shareholders at Kuka’s annual general meeting.

“We have set ourselves a goal of reaching a billion euros in sales by 2020. A partner who supports this strategy and provides us with better market access could be a considerable growth driver for Kuka.”

China is the world’s biggest market for industrial robots. The number of robots sold in China rose 16 percent last year, driving global sales up 8 percent.

Kuka is the latest and biggest German industrial technology group to be targeted by Chinese buyers as the world’s second-largest economy makes the transition from a low-cost factory location into a high-tech industrial hub.

Kuka’s management and supervisory boards have not yet made official recommendations to shareholders about the Midea bid, which has still to be launched.

(Reporting by Jens Hack; Writing by Georgina Prodhan; Editing by Maria Sheahan)