Times New Material Company and German ZF Group signed a "Memorandum of Cooperation" in Berlin, Germany, regarding the company's acquisition of the German ZF Group's rubber and plastics business. The cooperation began in December 2013. Both parties negotiated a fixed amount of acquisition. 290 million euros.

In order to avoid abnormal stock price volatility, the company has applied to the Shanghai Stock Exchange for an emergency suspension on March 31, 2014, and resumed trading on the morning of April 1. The opening price was 9.27 yuan, up 2.43%.

Times New Material is a subsidiary of China South Locomotive. According to the memorandum of cooperation signed by the two parties, Time New Materials intends to establish a wholly-owned subsidiary in Germany as the main entity for the acquisition, and to acquire in cash the BOGE rubber and plastics business of the ZF Group. The subject of this transaction is the assets of the BOGE rubber and plastics business of the ZF Group.

Mainly include BOGE Germany related business assets, BOGE France 99.9955% equity, BOGE US 100% equity (oil and organic sheet stripping business needs to be stripped), BOGE Slovakia 100% stake (oil strip and organic sheet stripping business needs), BOGE Australia 100% equity, 99.98% stake in BOGE Brazil and 100% equity in BOGE China.

Times New Materials stated that if the company can't complete the payment obligations under the main purchase agreement, CSR promises to provide the new price equivalent to the total price under the main purchase agreement through the methods of “increasing registered capital” and “providing shareholder loans”. Funding support for the difference between the price paid by the buyer or the buyer's designated party.

It is reported that Times New Materials and German ZF Group's purchase price, delivery conditions, and delivery points involved in the “Main Purchase Agreement” of the transaction signed by German ZF Group and Times New Material on December 11, 2013 Reconfirmation of content, delivery methods, etc. The terms of the transaction involved in the memorandum are consistent with the relevant contents of the Master Purchase Agreement.

According to the memorandum of cooperation, both parties will cooperate in good faith and assist in completing the pre-delivery steps and preconditions under the master purchase agreement so as to facilitate the acquisition as soon as possible according to the schedule agreed in the master purchase agreement. According to the memorandum of cooperation, both parties will cooperate in good faith and assist in completing the pre-delivery steps and preconditions under the master purchase agreement so as to facilitate the acquisition as soon as possible according to the schedule agreed in the master purchase agreement.

China South Locomotive and Times Times New Materials acquired German ZF Rubber and Plastics business to implement the "go global" strategy. In 2013, the State Council’s “Government Work Report” clearly stated that the strategy of “accelerating implementation and going global” encourages all types of enterprises to carry out foreign investment and transnational operations.” Chinese enterprises’ “going out” development can not only help companies to use domestic and foreign In order to reduce the trade friction with Europe and the United States, the global market will allocate resources and promote industrial upgrading, so the implementation of the “go global” strategy is of great significance and has become a new strategic measure for China's important enterprises to participate in international cooperation and competition. The acquisition responded to the “going out” strategy of the State Council and also complied with the development direction of CSR Group’s internationalization.