Changsha Zoomlion Heavy Industry Science & Technology Development Co., Ltd. (Zoomlion Heavy) announced on April 2 that it will acquire a 100% stake in Italy-based engineering machinery manufacturer Cifa, together with Hony Capital, via bid mode. Zoomlion Heavy will acquire a 60% stake.

Through this deal, Zoomlion Heavy aims to upgrade its position in global engineering machinery sector and to expand its overseas market. However, many uncertainties exist in the deal because the tenderee of the deal will dominate the bidding, and the tenderers are internationally well-known firms.

Sources say Cifa's sales volume reached RMB3B per annum. Currently it gains profits. Zoomlion Heavy has submitted bid application on March 31, and the result will come out in the following several weeks. The acquisition price will reach several billion RMB from its self capital and partial bank loans.