Beijing Enterprises (BEHL) has agreed to acquire German waste management firm EEW Energy from Waste (EEW) from EQT Infrastructure II for €1.4bn.
Expected to be completed during first quarter of this year, the deal is subject to securing an approval under German Foreign Trade and Payments Ordinance.
The acquisition is part of Beijing Enterprises’ long-term strategic focus and overseas expansion plan.
BEHL executive director and vice-president Xinhao Jiang said: “EEW has an exceptional management team, solid track record, and strong expertise in constructing, operating and optimizing state-of-the-art energy-from-waste plants.
“We are confident that this transaction will introduce EEW’s operation excellence and know-how to China market, and improve our operation efficiency and management standards of waste business in China.”
In March 2013, EQT Infrastructure II acquired a 51% interest in EEW and partnered with E.ON to develop the business.
However, in April 2015, E.ON sold its 49% stake in EEW to EQT as part of its restructuring program.
EQT Partners partner and investment advisor to EQT Matthias Fackler said: “Over the past three years, we have used our industrial expertise to support EEW in strengthening its core business processes.
“We are convinced that Beijing Enterprises Holding is the right partner to support the further development of EEW including its continued domestic and international growth.”
Reuters reported that the acquisition could play a key role for China, with government researchers predicting that about seven billion tonnes of waste is buried across the country’s major cities, and its capital Beijing is currently surrounded by a belt of landfill sites.
China is planning to convert 30% of its waste to electricity by 2030, up from less than 5% at present.