The era of energy-saving and environmental protection industry mergers and acquisitions

Recently, the energy industry transformation and development and green financial innovation summit forum was held in Shenzhen. As one of the seven strategic emerging industries that the country has accelerated to foster and develop, the energy-saving and environmental protection industry has gradually entered the era of mergers and acquisitions after the initial stage and scale stage.

At the meeting, Xu Wenjun, CEO of China Energy Saving Industry Network, said that currently there are nearly 10,000 energy-saving service companies on the market, and nearly half are registered with the National Development Committee. Among them, listed companies involve more than 50 contract energy management businesses, and the annual market size exceeds 2,000. Billion, there are about 300,000 employees in the industry. Since the National Development and Reform Commission issued the financial incentives for contract energy management and the implementation of the filing system, the energy-saving industry has achieved explosive development. With the intervention of large-scale state-owned enterprises, central enterprises, listed companies, and energy-using companies, the number of mergers and acquisitions in energy-saving and environmental protection industries has also risen. Traditional electrical engineering companies, high-energy heat-power equipment manufacturing, and intelligent building system integration companies have begun to enter the environmental protection and energy-saving industries and become the backbone of the energy-saving market.

Energy-saving and environmental protection industries include photovoltaic power generation, nuclear power, environmental protection building materials, and green lighting, and involve more than 50 listed companies. The data shows that from the end of 2012 to the present, only 18 cases of mergers and acquisitions occurred in the green lighting industry, involving a total value of 7 billion.

According to Tian Chongliang, Secretary-General of the Low Carbon Environmental Federation, the total number of companies in the energy conservation and environmental protection industry will reach the peak in 2014, and the market competition will be fierce. Those who are good at using capital tools will win the final victory.

On the other hand, listed companies are also setting up industrial mergers and acquisitions funds, through the industrial mergers and acquisitions fund to control the target companies for acquisitions. Mergers and acquisitions funds usually cultivate the target companies for 3 to 5 years to ensure the subsequent integration and the improvement of the corporate value.

"Listed companies will set up mergers and acquisitions funds to look for acquisition targets. In addition, some small energy-saving companies now use equity exchanges to accept listed company acquisitions and mergers and acquisitions. They are also gradually becoming the trend." Shenzhen Nine Schools Fair Investment Management Company Investment Two General Manager Guan Chunguang told reporters.

Guan Chunguang said that in the face of competition among large enterprises, small and medium-sized energy-saving companies are acquired by industry leaders or related listed companies, and achieving strong alliances is also a good choice.