Hitachi Zosen: Acquired waste incineration power generation: Germany, “SBE”
Hitachi Zosen:
On December 8th, it announced that it would acquire Germany, “SBE” from Nippon Steel Engineering.
The purchase price is not disclosed.
Demand for waste power generation surges:
Garbage is said to have a lower environmental impact if it is incinerated than if it is landfilled.
Hitachi Zosen will strengthen the European market amid rising global demand for waste power generation.
Hitachi Zosen Inova AG (“HZI”)
Hitachi Zosen Inova AG (“HZI”) will acquire all shares by February 2022.
Hitachi Zosen is strong in the United Kingdom and Switzerland.
A subsidiary of Nippon Steel Engineering
Meanwhile, Germany, “SBE” has won orders in Germany and Finland.
Nihon Keizai Shimbun
https://www.nikkei.com/article/DGXZQOUF088BF0Y1A201C2000000/
Notice Regarding Share Acquisition of Steinmüller Babcock Environment Group Companies (to make them subsidiaries)
Hitachi Zosen Corporation (HZC) announces that
its board of directors has resolved that Hitachi Zosen Inova AG (“HZI”), a wholly-owned subsidiary of HZC and specialized in the engineering of Energy-from-Waste (EfW) and biogas plants,
will acquire the shares of Steinmüller Babcock Environment GmbH (Germany, “SBE”)
that is engaged in the engineering of EfW plants as well as engineering of flu gas treatment systems for thermal power plants and others in Europe,
and make SBE its subsidiary (“transaction”).
HZI will conclude the share purchase agreement with Nippon Steel Engineering Co., Ltd. that currently owns the shares of SBE on December 9th, 2021.
Subject to the completion of the procedures, Steinmüller Babcock Montaż Sp. z o.o., a wholly-owned subsidiary of SBE based in Poland and specialized in the after-sale maintenance and construction work
will also become a consolidated subsidiary of Hitachi Zosen group.
The execution of this transaction is subject to, among other things, the approval of a national competition authority, which must be notified, the absence of breaches of representations and warranties, the completion of the necessary formalities, including the receipt of the accounting and audit reports, and the fulfilment of other general preconditions for its execution.
Rationale for the Transaction SBE group has extensive experience of EfW projects and strong market penetration and installed base of incineration equipment supply in Nordic countries including Germany, Finland and Sweden.
HZI has extensive market penetration and coverage of EfW projects in various regions including UK, Switzerland, Middle East, Russia and other countries.
As HZI has different markets and product offerings from SBE group,
this transaction will enable our group to have a complementary offering and extended and strengthened market coverage,
thus contributing to accelerating the implementation of our group’s key strategy of service and after sale maintenance business growth all across Europe on existing EfW plants.
After the acquisition of shares,
we aim to return SBE to profitability as soon as possible, through synergies with HZI, by strengthening the highly profitable core remodeling work, service and maintenance business, strengthening project management, enhancing procurement capabilities, and reducing administrative costs.More specifically,
HZI aims to further expand its share of the service and maintenance market in Europe by including boiler-related services, in which the SBE Group excels, in addition to incinerator services, in which HZI excels.Through the sanitary waste treatment and the provision of clean energy,
Hitachi Zosen Group
will continue to actively contribute to achievement of the SDGs which was adopted at the United Nations Summit and solution of the global environment problems.