Beijing Enterprises Holding Buys German Company

Chinese Beijing Enterprises Holding Limited, controlled by the Beijing Municipal Government, has reached an agreement with EQT Infrastructure II, a fund owned by the global private equity group EQT, to buy the German company EEW Energy from Waste. The agreement is only subject to clearance under the German Foreign Trade and Payments Ordinance.

The transaction was expected to close at the end of February 2016. The equity purchase price amounts to 1.4 billion Euro (about 1.6 billion US-Dollar). According to the seller, the transaction represents the largest Chinese direct investment in a German company to date.

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EQT Infrastructure II, which is a 1.925 billion Euro fund investing in medium-sized infrastructure businesses in the Nordic region, parts of Continental Europe, and North America, acquired a 51 percent stake in EEW in March 2013, and developed the business in partnership with E.ON, one of Europe’s largest energy groups. In April 2015, the fund purchased the remaining 49 percent of the shares after E.ON announced its group restructuring program.

With this acquisition Beijing Enterprises Holding intends to expand its energy-from-waste business. The company is a professional public utilities provider with focus on gas business, water services business, green industry, solid waste treatment and beer business.

EEW is active in Germany, Luxembourg and the Netherlands. The company operates 18 Energy from Waste plants with an installed waste capacity of around 4.7 million tons, producing in total six TWh of energy. In 2014, EEW generated sales of about 539 million Euro.

Photo: EEW Energy from Waste