BEIJING, Sept. 17 (Xinhua) -- Neway Valve (Suzhou) Co., Ltd. (603699.SH) announced on Thursday that it will terminate its move to buy out the German company, Econosto International Holding (Deutschland) GmbH.
The Shanghai-listed company said that the decision was made because of the unpredictable events such as the COVID-19 outbreak and major changes in market environment.
Neway Valve is one of leading valve manufactures in the world and majority of its products are used in the industries such as oil & gas, offshore, chemical, power, nuclear, mining and air separation industry.
According to the purchase agreement, it will pay 500,000 euros to the seller of the transaction to compensate the seller and the target company for part of the losses caused by the termination of the purchase agreement.
In early December, 2019, the listed company announced to buy a 100-percent stake in the German company for 11.3 million euros, in a bid to further expand its market share globally and optimize its industrial layout.
Registered in Germany in 1982, Econosto International Holding (Deutschland) GmbH is an engineering general contracting solution provider for the German oil, gas, power, shipping, air separation and petrochemical industries, and provides the valve assembly and testing, maintenance, transformation, processing and automation services. (Edited by Hu Pingchao with Xinhua Silk Road, hupingchao@xinhua.org)
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