Earlier this year at least one Chinese firm had made initial enquiries about acquiring one of the UK’s most-established and recognised waste business. Plus, there had been renewed interest from American investors.
However, the US has stayed away since the withdrawal of American firm Waste Management from the UK back in the 1990s.
And, Chinese interest in Europe may have been assuaged for now with the huge deal agreed between Beijing Holdings and EQT Infrastructure II and its affiliates last month.
EEW
The deal saw the Hong Kong-based conglomerate sign an agreement with EQT to acquire a 100% shareholding in EEW Energy from Waste, which is thought to be the largest energy-from-waste company in Germany, for approximately €1,438 million.
The agreement is conditional upon obtaining an approval under German Foreign Trade and Payments Ordinance and the transaction is expected to close during first quarter of 2016.
Xinhao Jiang, executive director and vice president of BEHL, said: “This transaction is in line with our long-term strategic focus and overseas expansion plan. 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.”
EU
Uncertainty about the future of the UK within the European Union is also seen as factor that may discourage overseas interest.
Now there is a strong expectation that a formal announcement from Biffa could come before the end of March.
Analysts suggest that institutional investors may welcome the opportunity to acquire a stake in Biffa because of the desire to secure long-term investments which are reinforced by the company’s municipal waste contracts. Plus, there has been considerable restructuring of Biffa which is seen as also making it more attractive to the investment market with funds looking for long-term deals.
Register for free to comment