Milan, Hannover Team Up

Fiera Milano and Deutsche Messe signed a joint venture agreement to develop their exhibition activities together in emerging markets – first in China, then in India, Brazil and Russia.

Fiera Milano acquired a 49-percent stake in Deutsche Messe subsidiary HM Global Germany for €8.8 million ($12.8 million) in cash and €2.6 million ($3.8 million) in five deferred installments to be paid depending on 2007-2011 results.

Also as part of the deal:

• Deutsche Messe transferred its Chinese activities and about 60 employees of Hannover Fairs Shanghai and Hannover Fairs China to HM Global.
• Through HM Global, Fiera Milano will co-organize 13 exhibitions in China with Deutsche Messe and acquire an operating base to export its shows and increase the flow of Asian exhibition participants to Milan.
• Fiera Milano's existing Shanghai office will become part of HM Global.

The two companies signed a preliminary agreement in Milan in 2006. The deal recently was finalized following an agreement between Deutsche Messe and Chinese authorities responsible for exhibition industry regulation.

Hartwig von Sass, a spokesman for Deutsche Messe, said, “Milan was our first choice, because we are focused on industrial fairs and Milan on consumer products,” he added. “It's a wonderful completion of both our portfolios.”

Fiera Milano CEO Claudio Artusi said the deal would help Italian companies approach the Chinese market and allow Chinese participants to get to know business-to-business events held in Milan. Fiera Milano is already evaluating the possibility of bringing events to China in the tourism, food and design sectors, he added.

Deutsche Messe has been operating in China since the early 1990s.