How far have the 'Chinese Suezs' gone?
The suspended acquisition case of GE water has finally came to an end. Suez environment became the winner of the bidding. With the remarkable $3.4 billion transaction value, there’s no doubt that this M&A case would be listed in the top 10 environmental news stories of 2017. For Suez itself, it also shows the muscles of the world’s second large environmental company to investors and also its rivals.
In recent years, Chinese environmental companies have been unprecedentedly active in global M&A market. From 2014, the Chinese army have exerted more than 20 international transactions towards oversea environmental companies. These actions can be understood as the initial approaches for the leading local companies to the international market.
Well, how far are they?
Among the 87 listed environmental companies, Beiing Capital is the most similar company to Suez, for its Water-Waste main business structure, and oversea investments. According to its latest released 2015 fy financial data, 37.03% of the total 7.06 billion yuan revenue came from oversea business, as an result of the acquiring of Transpacific New Zealand in 2014. The ratio seems to be pretty high, especially for a new comer to the global market.
However, in terms of business scale, it won’t be that optimistic.
The chart shows the comparison of Suez and Beijing Capital’s revenues from 2001 to 2016. The gap between these two companies is obvious, the leading Chinese company still has a long way to go.