Chinese Luxshare acquires German auto supplier Leoni AG, which also operates in Serbia

German auto supplier Leoni AG said Tuesday it had been bought by Luxshare, a Chinese supplier of electrical components. The Chinese group paid some EUR 320 million for its controlling stake in Leoni AG, reports AFP.

Luxshare will become Leoni's majority shareholder with a stake of 50.1%, and the rest of the shares will be held by Austrian businessman Stefan Pierer, the German company announced on its website.

Under the agreement, Leoni's cable division (Automotive Cable Solutions – ACS) will be spun off and sold to Luxshare's Singapore-based subsidiary Time Interconnect.

– Having Luxshare as a strong strategic partner will significantly enhance LEONI’s competitiveness across all fronts – from portfolio expansion and market access to technological capabilities and production – said Klaus Rinnerberger, CEO of Leoni AG.

– We are excited about the potential of this partnership. By combining our strengths, we will not only expand our global footprint but also drive innovation and deliver greater value to our customers – added Grace Wang, Chairman and CEO of Luxshare Group.

Leoni says in its press release that the company’s operational strengths in Eastern Europe, North Africa, and the Americas, alongside Luxshare’s extensive production capabilities in China and Vietnam, will enable both partners to meet regional customer needs with flexibility while maintaining global competitiveness.

Leoni also operates in Serbia through its subsidiary Leoni Srbija, which is a member of the German-based multinational group Leoni AG. The company has been operating in Serbia since 2009, when the first factory opened in Prokuplje. The opening of the factories in Malosiste (2014), Nis (2017) and Kraljevo (2018) followed.

Leoni Srbija produces complex wiring systems for premium-class cars. The company currently employs around 12,500 people and is the biggest employer in the production sector in Serbia. The value of Leoni’s investments in Serbia is EUR 203 million, announced Lokalna Fondacija Nis.

In 2023, the company was among the top 5 exporters in Serbia.

Leoni Wiring System Southeast d.o.o. Prokuplje

Luxshare

Leoni AG

Time Interconnect

Automotive Cable Solutions Leoni

Leoni Srbija

Stefan Pierer

Grace Wang

Klaus Rinnerberger

production of wiring systems