Bank of China International released a research report today that International Coal Machinery (01683-HK) will acquire Qingdao Tianxun at a price of 5389.3 million yuan. Qingdao Tianxun is a manufacturer of electronic control systems and related accessories for long-wall mining machinery used in coal mines. It is expected that this transaction will increase International Coal Machinery Group's profits by 4% and 17% in 2010 and 2011, respectively, maintaining the stock's buying investment rating, with a target price of HK$5.05. The report also pointed out that Qingdao Tianxun is currently a major supplier to a subsidiary of the International Coal Machinery Group. The acquisition will enable the Group to occupy a larger part of its value chain while also complementing the company's product line, thereby enabling it to increase its market share in the parts and repair market. International Coal Machinery rose 0.57% throughout the day to close at HK$3.50.