Skip to content
AidData logo

Overview

Bank of China provides a €83.5 million EUR loan to CITIC Dicastal Wheel Manufacturing for its acquisition of KSM Castings Group (Linked to Record ID#102120)

Commitments (Constant USD, 2023)$131,920,278
Commitment Year•2011Country of Activity•GermanyDirect Recipient Country of Incorporation•China (People's Republic of)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2011
Start (planned)
Dec 31, 2011
Start (actual)
Nov 11, 2011
End (planned)
Dec 31, 2011
End (actual)
Nov 11, 2011

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Receiving agencies

State-owned companies

  • CITIC Dicastal Co., Ltd. (formerly CITIC Dicastal Wheel Manufacturing Co,. Ltd.)

Loan description

Bank of China provides a €83.5 million EUR loan to CITIC Dicastal Wheel Manufacturing for its acquisition of KSM Castings Group

Interest type•Unknown

Narrative

Full Description

Project narrative

In July 2011, CITIC Dicastal Wheel Manufacturing Co,. Ltd. — a Chinese supplier of cast aluminum wheels for the automotive industry and wholly-owned subsidiary of Chinese state-owned CITIC Group — entered into an agreement to purchase the entirety of the shares of KSM Castings Verwaltungsgesellschaft mbH and of KSM Castings Holding GmbH (together the KSM Castings Group) from European private equity firm Cognetas LLP for $300 million USD. In 2011, the Bank of China (BOC) issued a €83.5 million EUR merger & acquisition (M&A) loan and a $73.05 million USD M&A loan to CITIC Dicastal Wheel Manufacturing Co,. Ltd. to support its acquisition of KSM Castings Group. Record ID#102119 captures the €83.5 million EUR loan. Record ID#102120 captures the $73.05 million USD. KSM Castings, formerly ThyssenKrupp Fahrzeugguss, is a German light metals casting firm that casts automotive structural, chassis, and powertrain components to supply to automotive firms like Volkswagen, Daimler, Benteler, Bosch, ZF, and TRW. KSM includes six light-metal automotive diecasting and permanent mold foundries in Germany, Czech Republic, and China. For the fiscal year ending in March 2011, the firm had revenue of €401 million EUR. KSM Castings Group includes Kloth-Senking Metallgiesserei in Hildesheim, Germany; Druckgusswerk Fritz Volkel, in Wuppertal, Germany; DGT Druckgiesstechnik, in Radevormwald, Germany; KSM Castings Wernigerode GmbH, in Wernigerode, Germany; KSM Castings CZ a.s., in Hrdek, Czech Republic; and KSM Castings Changchun, in Changchun, China. CITIC Dicastal expected the acquisition to help expand its chassis, powertrain, and autobody businesses and improve its overall technological capability. The acquisition was expected to close in the second half of 2011 after approvals from the Chinese Government and other regulators. On September 29, 2011, the European Commission approved the acquisition under Article 6(1)(b) of the EU Merger Regulation. The acquisition was completed on November 11, 2011.