China Energy Engineering Group Acquires Spanish Engineering Design Companies
The equity transfer ceremony of the acquisition of Spain's EAI and GHESA by China Energy Engineering Group Planning & Engineering Co., Ltd. (hereinafter referred to CPE) was held in the morning of January 21st, local time in Madrid, Spain, marking the completion of the largest acquisition of engineering design companies by Chinese-funded enterprise in Spain so far.
According to the Share Purchase Agreement signed by CPE and EAI and GHESA's original shareholders—Naturgy Engineering, S.L., Iberdrola Ingeniería y Construcción, S.A.U., Técnicas Reunidas, S.A., CPE acquired 100% equity of EAI and GHESA. The two parties completed the equity transfer on January 20, 2020.
EAI was founded in 1971 and its business scope includes electricity, information and renewable energy. GHESA started its business in 1963 and has more than 55 years of extensive experience in power facilities, fountains and infrastructure construction.
The acquisition will help CPE enhance its technological, investing and financing capabilities and to enlarge its horizon of technological innovation. With obvious complement advantages, it also facilitates CPE, EAI and GHESA to fully exert their respective superiorities and to strengthen the synergetic development in the international market.
This acquisition is an important step for CPE in accelerating the internationalization and becoming a world-class multinational engineering company based on the concept of “Technology, Innovation, Platform, Diversification and Internationalization” and has a significant implication on realizing the company's medium- and long-term development strategy.
The president of CPE stated that CPE will respect to the greatest extent the development history, management system and cultural traditions of EAI and GHESA. CPE will help EAI & GHESA to establish a standardized board system, to bring up an excellent management team, and to create a favorable environment for working. CPE, EAI and GHESA will work together to pursue excellence and shared growth, to promote the healthy and sustainable development.
This acquisition is not only of great significance to increase the overall image and international status of China's energy consulting, planning and design industry, but also to better implement the Chinese opening-up policy and to participate in International Division of Labor. At the same time, as one of the first investment projects implemented after President Xi Jinping's visit to Spain, the acquisition will also support the further deepened exchange and cooperation between China and Spain in energy, high-tech, infrastructure, and personnel training.
CPE:
China Energy Engineering Group Planning and Engineering Co., Ltd. (hereinafter referred to as “CPE”) was established in May 2018 by merging 6 regional design institutes originally subordinate to China Power Engineering Consulting Group Co., Ltd. (CPECC) and 14 provincial design institutes originally subordinate to China Energy Engineering Corporation Limited (CEEC). After the merging, the new company CPE has a registered capital of RMB 10 billion RMB yuan and is wholly-owned by CEEC, while CPECC continues to exist and is administered by CPE.
CPE is positioned as a service provider active in domestic as well as international market offering government departments, financial institutions, investors, developers and project legal entities with integrated engineering and construction solutions, mainly for power planning research, consulting, evaluation, survey, engineering, supporting, EPC general contracting, power project investment and operation, and development of related proprietary technological products, etc.
With formidable technological strength, complete disciplinary combination, rich experience in engineering practice as well as solid comprehensive management capabilities on top of a massive employment size of nearly 20,000 people, including 12 State Masters in survey and design,
CPE holds a guiding and leading position in electric power survey and design in China. In particular, CPE has outstanding advantages in the fields of ultra-supercritical coal-fired units of 1000MW, conventional islands of nuclear power, clean coal power generation, air-cooling units, UHV AC-DC power transmission and transformation, and offshore wind power.
As a survey and design consulting company with the largest scale in the world, CPE has undertaken the research tasks in one after another major power development and planning program such as national electricity market analysis, power consumption, power grid planning, West-to-East power transmission, nationwide grid coverage, power industry structure optimization and upgrading, etc. It has completed the survey and design works for a large number of domestic power generation projects and power transmission and transformation projects as well as hundreds of power projects in dozens of other countries, and has won dozens of national quality engineering gold awards in the process.As a constant advocate for company transformation and upgrading, CPE innovatively created the innovative Design-headed EPC Model, with which it successfully completed a series of unprecedented EPC projects such as the first 600MW class and 1000MW class power generation units in China, and has successively won the "General Contracting Project Gold Key Award" for several dozens of times.
Giving full play to the leading role of its academician expert workstation, postdoctoral workstation, and 10 technology research and development centers in technological innovation, CPE has been the unequivocal leader in the research and standardization course of China's electric power survey and design sector. It has undertaken most of the research and standardization tasks in the sector in China, actively fulfilling the objectives for independent development of new power technologies as well as innovation based on introduction and assimilation of advanced foreign technologies. In the process, it has won Grand prize, the First Prize and the Second Prize of National Science and Technology Progress Award for multiple times.
CPE actively participates in the development and implementation of urban rail transit, smart city, sponge city (including water treatment), underground integrated pipe corridor, roads and other infrastructure projects, and has broken through milestones after milestones in the project construction scorebook.
Facing the future, CPE will continue to deepen reform, promote the company’s transformation and upgrading, raise the quality and efficiency levels, and strive to become a world-first-class SMIDIP (scientific, management, innovation, diversification, internationalization, and platform) type transnational engineering company.
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