Norinco’s acquisition of Fuba: Chinese defense conglomerates acquiring European technology
Datenna continuously tracks and conducts research on China-EU joint ventures in Europe. In this series of articles, we have decided to highlight our research and data on interesting joint venture cases. This article analyses the acquisition of Fuba in Germany.
- German company Delphi’s Advanced Reception Systems was sold to Northeast Industries Group and renamed Fuba Germany in July 2015
- Key technology for connected cars: 4G, GPS and car-to-car communication
- The investor is owned by Norinco – a Chinese state-owned defense contractor worldwide
A state-owned defense contractor
On July 31st 2015, an acquisition agreement regarding UK-based company Delphi’s German reception systems business unit Reception System was reached between Delphi and Northeast Industries Group. The transaction size was not disclosed. As such, the unit was renamed to Fuba (Germany) Automotive Electronics. The original shareholder Delphi has since been resold, and renamed to Aptiv.
The business scope of Northeast Industries Group includes (among others) research and production of military mechanical and electrical products. Northeast Industries Group is 100% owned by the Norinco Group. Norinco is a state-owned defense contractor that considers itself the backbone of the Chinese army’s mechanical, information technology, and intelligent equipment development. Norinco is directly owned by the State-owned Assets Supervision and Administration Commission of the State Council. Based on this ownership structure we can conclude that Delphi’s formerunit Fuba is now controlled by the Chinese government. On June 24th 2020 the US Pentagon listed Norinco as one of 20 Chinese companies owned or controlled by the Chinese military.
What does Fuba Automotive Electronics do?
Delphi’s advanced reception unit (now: Fuba) has over 50 years of experience in automotive communication. They develop antennas and receivers for audio and tv broadcasting, but also for 4G connectivity, GPS and car-to-car communication.
With an accumulation of over 450 patents, Fuba had established an entire product portfolio ranging from entry audio antennas up to complex antennas with multiple services and future Car2Car applications. Fuba also has its own in-house testing and validation capabilities. Unique in the industry, Fuba has the only measurement field in Germany where 3D satellite technology can be measured and tested for real life applications. Such Car2Car technology has potential military applications in military drones and Unmanned Aerial Vehicles. Therefore via this acquisition the Chinese government acquired sensitive dual-purpose technology.
Norinco and acquisitions in Europe
Norinco has been involved in more acquisitions in Germany. In 2012, their subsidiary Henan North China Star Light Mechanical & Electrical acquired Kiekert AG. Later, in 2015 their subsidiary North Lingyun Industrial acquired the German company Waldaschaff Automotive GmbH. Both companies provide automotive technology. In 2016 another of Delphi’s business units, namely in mechatronic projects, was acquired and renamed to Merit Automotive Electronics Systems (Spain).
In 2017 Norinco acquired the right to construct and operate an off-shore wind power project in the Adriatic Sea of the coast of Croatia. With this deal they acquired a 76% stake in the Croatian firm Energija Projekt for 30 million euro.
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