Epitaxial growth is frequent, and environmental protection will not be reduced.

Since 2016, there have been more than 50 mergers and acquisitions involving environmental protection, and the total amount of mergers and acquisitions is nearly 30 billion yuan. Analysts believe that under the background that comprehensive governance has become the trend of environmental protection industry, leading companies have more advantages in obtaining orders, superior platform enterprises are favored by enterprises, overseas mergers and acquisitions become the driving force for enterprises to achieve epitaxial growth, technology and brand become the target of pursuit.

In 2015, mergers and acquisitions in the field of environmental protection were hot, and this rule continued in 2016.

According to public data, there were eight overseas mergers and acquisitions in the environmental protection industry in the first half of 2016, totaling more than 13.6 billion yuan. In 2015, there were 15 overseas mergers and acquisitions in the field of environmental protection, with a total turnover of 5 billion 100 million yuan. It is not hard to find that the amount of overseas mergers and acquisitions in the field of environmental protection in the first half of 2016 is nearly three times that of last year.

However, overseas mergers and acquisitions in the environmental sector in the first half of the year were mostly small mergers and acquisitions of less than 100 million yuan, while Beijing Holdings took over EEW, a German waste energy company, in February for 1.44 billion euros (about 10.5 billion yuan), a stir in the industry. According to many industry insiders, the reasons for frequent M&As include seeking leading technology, patents and brands and introducing them into the domestic market, achieving outward growth, arbitraging for differences in valuations at home and abroad, and hedging the risk of RMB depreciation and domestic economic recession.

From the point of view of overseas mergers and acquisitions of environmental protection enterprises, the pursuit of advanced technology is the first, followed by the strategic layout, and actively explore overseas markets are also the reasons why some environmental protection companies actively carry out overseas mergers and acquisitions. According to some analysis, with the growing strength of domestic environmental protection enterprises, the amount of overseas mergers and acquisitions and the number of cases will increase year by year in the context of the growth of overseas investment of Chinese enterprises.

Environmental surge in overseas mergers and acquisitions

On the rapid growth of overseas mergers and acquisitions in 2016, analysts believe that this is an endogenous phenomenon of the growth and growth of environmental protection enterprises. With the gradual growth of a large number of environmental protection enterprises, the scale of China's environmental protection industry mergers and acquisitions is expected to continue to increase this year.　　

In fact, since 2015, there has been a wave of mergers and acquisitions in the field of environmental protection. It is reported that 10.5 billion yuan of the 13.6 billion yuan deal was contributed by an overseas merger and acquisition, in which Beijing Holdings, which shocked the industry, took over EEW, a German waste energy company, for 1.44 billion euros in February. Specifically, in the first half of the eight overseas mergers and acquisitions in the field of environmental protection, three appeared in the field of environmental monitoring, two appeared in the waste incineration power generation industry, two appeared in the water treatment industry, and one in the field of metal recycling.

According to Xue Tao, executive director of E20 Research Institute, international mergers and acquisitions of state-owned investment companies seek capital-operating projects, such as the acquisition of EEW by NCC, while private listed companies prefer technology companies, such as Tianxiang Environment's planned acquisition of German Bellfenger Water Treatment Technology for 205 million euros. A 100% stake in the company.

Against this background, in the first half of the domestic environmental mergers and acquisitions, the real mainstream is still small mergers and acquisitions, transactions less than 100 million yuan of mergers and acquisitions about 22 cases, accounting for 45% of the total transaction. As in May, the Guangxi Bosch Branch accepted the relevant qualifications, staff and assets of the Guangxi Academy of Environmental Sciences at a lower price of 30.24 million yuan. It is reported that Bosch Branch is the first listed company to extend an olive branch to the decoupling enterprise after the decoupling of EIA business and environmental protection management.

According to Shi Fangbiao, a senior environmental protection official, this phenomenon shows that the main body of environmental mergers and acquisitions in China has extended from large-scale enterprises to small and medium-sized enterprises; on the other hand, the popularity of technology-based companies has also increased, so some small and technological enterprises have become mergers and acquisitions. Hot targets.

Platform enterprises are popular

According to the types of mergers and acquisitions, there are three main directions of mergers and acquisitions of environmental listed companies: horizontal integration, vertical integration and platform. Wind statistics show that since 2016, the Central Plains environmental protection, Xingyuan environment, three-dimensional silk, oriental gardens and other landscape to the horizontal integration of the purpose of restructuring, through the issuance of shares to buy assets to create a comprehensive environmental protection service provider.

Three-dimensional wire said that the company positioned comprehensive environmental protection service providers, to create an integrated "clean factory" as the goal, through the extension of mergers and acquisitions continue to expand business, positive transformation; Wan Bangda proposed through five years to develop a full range of services, life cycle services, multi-industry coverage and diversified development of comprehensive environmental protection clothing. Business business.

Wu Shunze, deputy dean of the Environmental Planning Institute of the Ministry of Environmental Protection, said that in the future the environmental protection industry will develop from traditional water and air-related products and services to water, atmosphere, soil, solid waste and other related products and services in an all-round way, from product-oriented to service-oriented industrial transformation, environmental protection services will be from a single element. The single link has gradually developed into a comprehensive environmental protection mode that integrates the upstream and downstream of the environmental protection industry chain and provides one-stop service.

Taking the trench environment as an example, the company intends to pay 356 million yuan in cash and issue shares at a total price of 880 million yuan for 100% equity of Beijing Sano Water Science and Technology Co., Ltd. At the same time, it plans to issue shares to Hubei state-owned operation, Suzhou Houyang sailing, Xinjiang Fenghua Shengding and company director Xiao Shuangtian, raising no more than 524 million yuan. After the acquisition, listed companies will integrate the underlying assets on the basis of endogenous, denotative development, customers to provide "water, electricity, gas" integrated solutions to become integrated environmental investment services operators.

It is generally predicted that under the background of comprehensive management becoming the trend of environmental protection industry, the advantages of leading companies in the industry will be more obvious, and the environmental protection industry will be more and more concentrated to the advantage platform enterprises in the future. Especially noteworthy is that the sponge city, monitoring environmental assessment, hazardous waste disposal industry investment space is expected to usher in an outbreak period.

Foreign mergers and acquisitions are mostly private enterprises.　　

In 2015, a group of state-owned non-environmental protection enterprises entered the field of environmental protection through mergers and acquisitions. This year there are still similar cases.

On the evening of June 22, Xinsanban Kaitian Environmental Protection announced that Hunan Aerospace Co., Ltd. acquired 43.67% of Kaitian Environmental Protection by way of shareholder transfer and subscription, becoming its largest shareholder. The announcement shows that the controlling shareholder of Hunan Aerospace is China Aerospace Science and Industry Group Corporation, which is a state-owned super-large high-tech enterprise directly managed by the central government.

On the whole, in the first half of 2016, most of the M & A from non environmental sectors were private enterprises. In February, Nan Porcelain, a new third board company, announced that it planned to invest 27 million yuan to buy 100% of Jiangsu Youcana Environmental Protection Company. South China stock is the manufacturer of insulation materials, while the target company mainly deals with ship exhaust treatment. In June, Chengzhi acquired 70% of Anhui Baolong Environmental Protection Technology Co., Ltd. at a cost of 322 million yuan through equity transfer and capital increase. The former is mainly engaged in life science and technology, liquid crystal materials, pharmaceutical chemicals, medical services, while the latter is engaged in the research and development, production and sales of laser remote sensing monitoring instruments for motor vehicle exhaust.

From the perspective of subdivision, water and solid waste remain the most popular mergers and acquisitions. Due to the dividend policy of "ten territories", two mergers and acquisitions in the field of soil have emerged. In May, Jerry announced that its wholly-owned subsidiary, Jerry Environmental Technology Co., Ltd., had bought 100% of Sichuan Huaxia Caiyun Engineering Consulting Co., Ltd. for 18.192 million yuan. After the acquisition, Jerry shares will receive the qualification of environmental remediation projects such as soil remediation.

In early June, Soviet Jiaotong Branch announced that it planned to acquire 100% of TestAmerica, the world's largest environmental testing company, through a merger of its U.S. subsidiaries. In this regard, Xue Tao, executive director of E20 Research Institute, said that it is normal to grab hot spots in the field of subdivision. The environment in emerging markets is maturing, and the environmental industry will spur mergers and acquisitions, not surprisingly, because there will surely be more and more in the future.