German-based company Kuka wants a firm assurance on job protection and preservation of all physical sites following the proposed takeover of the robotics company by China's Midea Group, a person familiar with the matter said.

A long-term agreement to this effect is being worked out by both companies, the person said. A long-term agreement in Germany typically runs for three to five years.  

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At present, 4,500 Kuka company workers are based in Germany, out of which 3,500 workers are working in the company headquarters in Augsburg.

Sources claim that Kuka wants to protect the jobs of all 4,500 German workers, along with all the physical sites, including the company's research and development facility at its headquarters. The robotic company also wants Midea Group's help in promoting its products in the Chinese market.   

On Thursday, China's electric appliance manufacturer officially launched a takeover of the Kuka Company, reportedly offering 33.3 billion yuan ($5.1 billion) for a more than 30 percent stake. Under German law, any company acquiring a more than 30 percent stake is obliged to bid for rest of the company.

Reports of Midea Group bidding for Kuka has already raised concerns among German politicians, who are desperate to prevent Kuka's critical technology from falling into Chinese hands. Earlier this month, Germany Economy Minister Sigmar Gabriel said that the government is on the lookout for a European company to bid for Kuka.

German Chancellor Angela Merkel, during her visit to China earlier this week, said that her government won't prevent takeover, but also left the door wide open to German firms making a counter-offer. However, no European or German company has expressed interest in acquiring Kuka.

TagsKuka, Midea Group, china, China and Germany