'Grandfather of markets' leads China's charge into German M&A

Fri Jan 15, 2016 2:00am EST
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* Chinese dealmaker Cai had key role in KraussMaffei acquisition

* His $1 billion fund to focus on Chinese deals in Germany

* He seeks to bring leading industrial technology to China

By Arno Schuetze and Denny Thomas

FRANKFURT/LONDON, Jan 15 (Reuters) - A veteran investment banker renowned for listing some of China's biggest enterprises is turning his sights on Germany - and seeking to help Chinese companies snap up some of the country's coveted hi-tech manufacturing firms.

Henry Cai - a former dealmaker for UBS and Deutsche Bank - was behind the biggest-ever Chinese acquisition of a German company this week, when a consortium led by state-owned China National Chemical Corp (ChemChina) agreed to buy machinery maker KraussMaffei Group for about $1 billion.

The consortium included his investment firm, AGIC Capital, and was a rare example of a Chinese state firm teaming up with a private equity group.

The deal represented the first investment for AGIC, which Cai founded last year after quitting investment banking. He is set to close his first fund at $1 billion in the next few months, and it will mainly focus on Chinese deals in Germany.

He is targeting deals in "innovative industrial tech" in areas like processing technology, robotics, automation, sensors, battery technology and environmental technology, according to people familiar with his thinking, but did not name any companies.   Continued...