Australia's Seven Group (SGH) has signed an agreement to offload its mining machinery division WesTrac China to Lei Shing Hong Machinery (LSHM) for A$540m ($426.72m).

Since it became operational in China in 2001, WesTrac worked in partnership with equipment manufacturer Caterpillar (CAT) to establish a sizable market share in the territories of Shanxi, Hebei, Liaoning, Inner Mongolia, Heilongjang, Jilin, Beijing, and Tianjin, according to SGH.

The proceeds from the sale of WesTrac China will be diverted to SGH’s operations in Australia, including its WesTrac Australia business.

SGH managing director and CEO Ryan Stokes said: “We are proud to have built a market leading position in North East China and we are confident that under the ownership of Lei Shing Hong Machinery, a major CAT dealer in China, our customers will continue to benefit from innovation and first-in-class service.

"WesTrac China has been a strong performing business for SGH and this is the right time to realise the value of what we have achieved."

“WesTrac China has been a strong performing business for SGH and this is the right time to realise the value of what we have achieved.

“SGH’s relationship with CAT remains one of our most important and enduring partnerships, and we continue to be strong supporters of their dealership model. We remain interested in any additional dealership opportunities with Caterpillar.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

LSHM indicated that the acquisition will improve its market position in the region.

The transaction is subject to People's Republic of China (PRC) regulatory approval.