Industry News · 2017-02-16
National policy has been encouraging the environmental protection industry to expand internationally, and the Belt and Road initiative has provided a broader stage for Chinese environmental enterprises to go global.
Against this backdrop, cases of overseas mergers and acquisitions by Chinese environmental companies have been increasing. Through M&A, enterprises introduce advanced foreign environmental technologies, management experience and channels to expand overseas markets.
Overseas M&A, however, is not without risks. Differences in legal systems, cultural integration and post-merger operation have brought lessons to many deals, and prudent valuation and due diligence have become increasingly important.
In addition to M&A, exports of Chinese environmental equipment and international engineering contracting have continued to grow. Domestic equipment such as dust collectors, waste gas treatment systems and sewage treatment units have been recognized by more overseas markets.
Going global will in turn drive the upgrading of the domestic environmental protection industry. By participating in international competition, Chinese enterprises can improve technology and services, and form a positive interaction between domestic and overseas markets.