U.S. outdoor power equipment maker MTD Products Inc. is in the final stages of talks to buy 25 percent of an affiliate of Zongshen Power Machinery Co. Ltd. for up to $63 million.

MTD has been in talks to buy a stake in the engine-making affiliate, Zongshen General Power Machine (ZGPM), since 2005 and the deal could be finalized by the end of this year.

MTD and Zongshen are working on the details now. The sale is worth up to 500 million yuan ($62.9 million).

ZGPM, which has capacity to make 3 million power equipment engines annually, aims to expand that to 5 million units eventually. Most of its production is for export.

In the first six months of this year, ZGPM booked 30.64 million yuan in net profit and full-year earnings are estimated at 50.07 million yuan, according to data from the company.

Zongshen, a major motorcycle maker based in southwest China, is now awaiting regulatory approval to take over ZGPM from its controlling shareholder.  After the takeover, it would sell 25 percent to MTD Products.

Source:佚名