New Energy M&A Vertically Develops Horizontal Expansion of Environmental Protection Industry

On the 16th, Zero2IPO Research Center released a report that from the year of 2009 to the first half of 2010, the Chinese cleantech industry disclosed a total of 24 cases of mergers and acquisitions, with 21 disclosure amounts, involving a total of US$4.546 billion. During the inventory period, the characteristics of mergers and acquisitions in the cleantech industry found that the new energy industry tends to grow vertically, while the environmental protection industry expands more horizontally.
Xiao Ke, an analyst at Qingye University, said that the new energy industry has started earlier, especially in the photovoltaic industry, and has produced some large-scale listed companies with relatively abundant funds. These companies have vertical integration of the upstream and downstream industries. The demand for development, so actively take mergers and acquisitions. For example, GCL-Poly has acquired Polysilicon, a polycrystalline silicon production company, and Gaojia Solar, a wafer-manufacturer, and Jiangxi Sevey has acquired SGT, an Italian photovoltaic system integrator, downstream.
Environmental protection industries such as sewage treatment and solid waste treatment often require geographical expansion through mergers and acquisitions. Their mergers and acquisitions are due to horizontal development needs, such as Sander Environment (formerly combined with resources) in the second quarter of 2009 against Xianning Gan. Water source mergers and acquisitions. In addition, there are also mergers and acquisitions by multinational companies to enter the Chinese market. For example, Marubeni acquired 30% of Anhui Guosheng Environmental Protection & Energy Technology Co., Ltd. in the fourth quarter of 2009, and Waste Management Inc, a solid waste processing company in the United States, spent RMB 142 million. The U.S. dollar acquired 40% of the shares of Shanghai Environment Group.
Finally, the report stated that due to the recent development of clean technology, it has also attracted some traditional industry companies to implement mergers and acquisitions in this area.

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