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Beijing Electric Acquires EEW For €1.44 Billion, The Largest Ever Chinese Direct Investment In Germany

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February 5
7:07 AM 2016

Beijing Enterprises Holdings Ltd. (BEHL), controlled by the Beijing Municipal Government has agreed to purchase EEW. EEW is a waste to energy plants operator that produces energy from wastes and Swedish buyout firm EQT Infrastructure II appears as its owning entity.

Finnish utility Fortum Oyj and a group of joint bidders consisting of Australia's Macquarie Group and German utility Steag have been reported to bid against Beijing Enterprises. It has won the bid at a cost of €1.44 billion ($1.6 billion). The deal has been tagged as the biggest ever Chinese direct investment in a German Company to date, reports Bloomberg citing an EQT statement announced on Thursday.

Following legal obligation, the transaction will be cleared under the German Foreign Trade and Payments Ordinance. EQT partners has chosen Beijing Enterprises Holding as the right partner to support the further development of EEW, reports SeeNews Renewables quoting Matthias Fackler, partner at EQT Partners AB, the investment advisor to EQT Infrastructure II.

EQT is a leading global private equity group with approximately €29 billion in raised capital. EQT Infrastructure II has acquired a 51% stake in EEW during March 2013 and developed business with E.ON, one of Europe's largest energy groups. The equity investment company has acquired the remaining 49% from E.ON in April, 2015, reports Business Wire.

The selling entity has €1.925 billion fund invested in medium-sized infrastructure businesses in the Nordic region, parts of Continental Europe and North America. Its investment targets are regulated infrastructure, concession-based infrastructure, market-based infrastructure and infrastructure-related services.

EEW is the market leading Energy-from-Waste company in Germany. It operates 18 waste recycling plants and produces electricity, district heating and process steam for industrial use.

The EEW plants are modern facilities and frequently updated to adopt with the latest technological standards. In total, EEW produces 6 TWh (Terra Watt hours) of energy a year and has recorded sales revenue of €539 million in2014.

BEHL is the sole overseas listed conglomerate controlled by the Beijing Municipal Government. It aims to channel capital, technology and management expertise from international market into Beijing's development priorities. BEHL focuses on water services business, green industry and solid waste treatment, and beer business.

BEHL, the state controlled lone overseas listed company of China, is going to make the largest ever Chinese direct investment. Defeating other giant firms, it has won the bid for purchasing EEW for €1.44 Billion from ETQ Infrastructure II. EEW produces 6 TWh (Terra Watt hours) of energy a year and has recorded sales revenue of €539 million during 2014.

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