Swedish financial investor EQT has agreed to sell the German waste incineration specialist EEW to the Chinese energy and water management firm Beijing Enterprises Holding. The transaction must now await approval under the German Foreign Trade and Payments Ordinance (AWV) and is expected to be closed by the end of February 2016.
According to EQT, the equity purchase price amounts to €1.44 billion, the largest Chinese direct investment in a German company to date. EQT Infrastructure II had acquired a 51 per cent stake in EEW in March 2013 from the German utility Eon, which initially kept the remaining shares. In April 2015 the Swedish investor purchased the outstanding 49 per cent stake.
Among other moves following the EEW takeover, EQT made changes to the management team, including the appointment of Bernard Kemper to replace Carsten Stäblein as EEW's chief executive officer. Before joining the German waste-to-energy firm, Mr Kemper's career had included stints as chairman of the management board at environmental services group RWE Umwelt as well as president of the German waste management association BDE.
"EQT's support and expertise have been instrumental to the optimization of business processes at EEW, and have provided a solid foundation for the company’s further growth," commented Mr Kemper on the acquisition. "We look forward to future success together with Beijing Enterprises Holding, and to the continued development of the company."