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Acquisition includes 300 staff, excludes around 100 jobs

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Deal subject to merger control law, terms undisclosed

BERLIN, Feb 25 (Reuters) - U.S. carmaker Tesla

will acquire parts of the insolvent German high-tech parts maker

Manz AG, including more than 300 employees at its site

in Reutlingen city in the southwest, the German company said on

Tuesday.

The deal marks a wider presence by Tesla in Germany, where

it runs a manufacturing site near Berlin, even after CEO Elon

Musk endorsed the far-right party AfD, which mainstream parties

have refused to work with due to its extreme positions.

Tesla sold almost 60% fewer cars in Germany in January than

a year earlier, as the U.S. electric vehicle maker faces a test

of popularity amid Musk's U.S. political involvement.

Manz's insolvency administrator and Tesla Automation GmbH, a

subsidiary of the U.S. company, signed a purchase agreement on

Monday, the German company said.

The parties agreed not to disclose a purchase price, and

completion of the transaction is subject to merger control law.

Tesla Automation, which specializes in the construction of

special-purpose machines at three German locations, plans to

take over more than 300 employees, acquire movable tangible

assets, and use Manz's property in Reutlingen.

Approximately 100 employees will lose their jobs and not be

transferred to Tesla Automation, according to Manz.

Insolvency administrator Martin Mucha said the structured

sales process for other assets was moving forward.

"We are currently holding promising talks with several

interested parties," added Mucha in a statement.

(Writing by Miranda Murray; Editing by Ludwig Burger and

Bernadette Baum

)