Suzhou Dongshan Precision Manufacturing Co., Ltd. (002384.SZ) announced on November 3 that its wholly-owned subsidiary DSBJ PTE.LTD has successfully acquired 100% equity of France’s GMD Group and completed debt restructuring, with a total transaction value of approximately €100 million. The company confirmed all prerequisites have been met, and GMD will be consolidated into its financial statements starting November 1, 2025.

When questioned about measures to prevent risks similar to the Nexperia acquisition controversy—where China’s Wingtech faced asset freezes and forced trusteeship by Dutch authorities—Dongshan Precision’s securities affairs staff stated: "There’s no need for concern. The automotive parts sector differs significantly from semiconductors in terms of supply chain dynamics."

**Strategic Expansion in Europe** The acquisition, initiated in May 2025, aligns with Dongshan Precision’s globalization strategy to strengthen its automotive parts market presence in Europe. GMD, founded in 1986, is a leading European automotive components manufacturer with €1.01 billion in 2024 revenue (unaudited) and 6,600 employees across 46 factories globally. The deal involved debt-for-equity swaps and partial debt forgiveness to optimize GMD’s capital structure.

Dongshan Precision emphasized synergies with its existing automotive parts business but noted integration details remain preliminary.

**Risk Mitigation** The company acknowledged cross-border integration challenges, including differences in labor policies and corporate culture, as well as macroeconomic and geopolitical risks. Industry experts advised phased integration, cultural alignment, and contingency planning to avoid pitfalls seen in the Nexperia case.

Analysts highlighted the importance of preserving GMD’s core competencies while achieving strategic synergies, given the automotive sector’s globally distributed supply chain—a contrast to semiconductor industry vulnerabilities.