FRANKFURT Nov 18 Japan's Komatsu and
China's Sinomach are to battle it out to buy German
machine tool maker MAG Group, three sources familiar
with the sale process told Reuters on Sunday.
Goldman Sachs, which is running the sale, has
narrowed the field to the two Asian companies, one of which
could end up paying as much as 700 million euros ($890 million),
the sources said.
Komatsu, which makes diggers and other construction
equipment, is seen as best placed to win the auction, the
An MAG spokesman would only say that a new owner should be
found by the end of the year. Officials at Komatsu and Sinomach
could not immediately be reached for comment.
MAG's U.S. arm is owned by U.S. investor Mo Meidar, who
built up MAG Group seven years ago from a number of separate
industrial businesses. He had to cede control over MAG's
European division to banks including Deutsche Bank
The sources said that Komatsu and Sinomach were both
interested in taking the two regional entities, but one of the
sources said there were additional suitors for the U.S. arm,
which caters mainly to the aerospace industry.
MAG, which employs 3,500 staff, generated revenue of $1.3
billion in 2011.