Midea buys 25% stake in Kuka for $1.3 billion

Chinese company seeks to transform production line with robot tech

Midea Group Co will become the largest shareholder of Kuka AG after buying a 25.1 percent stake in the robot-making company from Voith GmbH as part of a deal that has been closely scrutinized by German politicians.

Voith will get about 1.2 billion euros ($1.3 billion) by selling its stake, the closely held German company said on Sunday in a statement from Heidenheim, Germany. Kuka Chief Executive Officer Till Reuter backed the deal after Midea offered assurances that jobs and plants will be protected until the end of 2023.