Highway Holdings surges 12% after-hours as acquisition of Regent-Feinbau aims to boost Chinese automotive market presence.

Highway Holdings surged 12.0% in after-hours trading following the announcement of a planned acquisition of 51% in Regent-Feinbau Adermann GmbH, a German precision sheet metal manufacturer. The transaction, subject to due diligence and regulatory approvals, aligns with Highway Holdings' strategy to expand its OEM business and enter the growing Chinese automotive market. Regent-Feinbau’s expertise in laser cutting, welding, and assembly complements Highway’s existing operations, particularly its Shenzhen-based division, while unlocking access to a $50 billion annual sheet metal component market in China with a 2% annual growth projection. CEO Roland Kohl emphasized the acquisition’s role in enhancing the company’s competitive positioning, citing Regent-Feinbau’s Tier 1 supplier credentials and potential synergies in European markets. The move also underscores Highway Holdings’ broader M&A ambitions in Germany and its strong cash position, with $5.3 million in liquidity.