Joint Business Development of XCMG and Schwing in China

On December 6, 2012, in Shanghai, XCMG Construction Machinery Co., Ltd. (abbreviation: XCMG) signed a joint venture contract with XS Holding GmbH (a joint venture of XCMG Europe GmbH and the holding company of Schwing family, namely, the parent company of Schwing GmbH. abbreviation: XS Holding). XS Holding will increase the capital of Xuzhou XCMG Concrete Machinery Co. Ltd. (abbreviation: XCMG Concrete Machinery), the wholly-owned subsidiary of XCMG Machinery Co., Ltd..

The capital increase from XS Holding will be followed with 2 steps. Firstly, 110 Million Euros will be contributed into XCMG Concrete. After the first capital increase, XCMG Concrete Machinery shall be renamed as Xuzhou XCMG Schwing Machinery Co., Ltd. (abbreviation: XCMG Schwing Machinery). Secondly, XCMG Schwing Machinery will get an equity contribution of Schwing Shanghai, which is estimated as 7.5 Million Euros. After the two steps of capital increase, XCMG Construction Machinery will have 75% shares of XCMG Schwing Machinery and XS Holding will hold the rest 25% shares.

As the exclusive M&A advisor for XCMG, Eurasian Consulting has supported the post-merger integration and involved in the entire joint venture negotiation process.