Mutares plans to acquire a 67% stake in Hwaseung Special Rubber and Hwaseung Auto Parts, enhancing its automotive segment in the Chinese market.

Target Information

Mutares SE & Co. KGaA is set to acquire a 67% stake in Hwaseung Special Rubber (Taicang) Co., Ltd. ("HSR") and Hwaseung Auto Parts (Taicang) Co., Ltd. ("HST"), leading suppliers in the automotive sector. This acquisition, currently under final negotiation with the Korean-listed Hwaseung Corporation, marks a significant step in Mutares' global expansion strategy within the Asian market. The signing of the transaction is scheduled for the fourth quarter of 2025.

HSR and HST are recognized for their essential rubber sealing and hose products, supplying major automotive manufacturers including GM, VW, Hyundai, Kia, and Xiaomi. With two state-of-the-art production facilities and approximately 600 employees, the companies achieved over EUR 100 million in revenue in 2024. Their integration aligns seamlessly with Mutares’ Amaneos China business, revealing substantial synergies across the value chain.

Industry Overview in China

The automotive industry in China is currently the largest in the world, driven by rapid urbanization and an increasing demand for mobility. As the market expands, it faces significant transformations