China’s biggest home appliances maker Midea Group Company has further enhanced its footprint in Europe as it entered into a binding investment agreement with KUKA AG of Germany, a leading global supplier of intelligent automation solutions.

The investment agreement, announced on June 28, outlines Midea’s commitments to KUKA following the formal launch of the voluntary public tender offer for all KUKA’s shares on June 16 through Midea’s subsidiary MECCA International. Midea offered 115 euro (US$127.27) in cash in exchange for each KUKA share.

Both parties agreed the investment agreement will have a fixed term of 7-1/2 years. Thomson Reuters put the value of the deal at US$4.46 billion and Midea says the deal will be funded through a credit facility.

Midea chairman and CEO Paul Fang says its investment in KUKA is clearly predicated on creating long-term value for both companies. “We also welcome a broadly diversified shareholder base, as we believe that the continued commitment of all shareholders will benefit the KUKA group as a whole,” he adds in a statement.

By signing the investment agreement, Midea has confirmed that it fully respects KUKA’s brand and its intellectual property, and undertakes to enter into a detailed ring-fencing arrangement in order to guarantee the confidential treatment of business secrets and customer data to preserve KUKA’s relationships with its customer and supplier base.

Midea has re-emphasized that it aims to maintain KUKA’s independence and that Midea does not aim to enter into a domination agreement or delist the company.

Morgan Stanley is acting as the exclusive financial adviser to Midea on the transaction, while Freshfields Bruckhaus Deringer is the legal adviser. Deutsche Bank and Goldman Sachs are the financial advisers to KUKA.

The investment agreement came just less than a week of Midea’s announcement in which it has entered into a definitive agreement for the acquisition of 80% stake in Italy’s Clivet SpA, Clivet Espana SA and related real estate assets. The current shareholders of Clivet SpA, the Bello family, will retain the other 20% stake.

Through this strategic alliance, Midea says it will reinforce its presence in the European markets and their complementary strength will create significant synergies in product offerings, market presence, supply chain and manufacturing. The completion of the transaction is expected before the end of the year.

Credit Agricole CIB is the sole financial adviser to Midea, while DC Advisory is the sole financial adviser to Clivet.

Founded in 1968 in Guangdong, China, Midea has now established a global platform of more than 200 subsidiaries and nine strategic business units. It recorded a total revenue of over 18.7 billion euro in the fiscal year ended December 31 2015.