Under the deal announced Friday, Joyson, a privately owned company, will acquire a 74.9 percent share of Preh. Preh's current majority shareholder, Deutsche Beteiligungs AG, will retain 25.1 percent of the company.

Last year, Preh generated automotive sales of 343 million euros (3.2 billion yuan), while Joyson's automotive revenues totaled 1.6 billion yuan.

The new owners will retain Preh's management.

The acquisition builds on a joint venture that the two companies formed last August, when Preh entered the Chinese market. With an infusion of capital, the new owners expect to expand Preh's current operations in Asia, Europe and North America.

Preh, of Bad Neustadt an der Saale, makes interior control systems, sensors and electronic control units.

The company was founded in 1919 and has 2,500 employees in Germany, Portugal, Mexico, the United States, Romania and China.

Joyson Automotive comprises four operating companies: Joyson Automotive Ningbo, Changchun Joyson, Bosen Corp. Ningbo and Huade Plastics Shanghai.