Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Beijing Capital Group acquires Transpacific New Zealand

Beijing Capital Group acquires New Zealand’s leading integrated waste management business with the acquisition of Transpacific New Zealand

The Beijing Capital Group (“BCG”), a long standing member of China’s Top 500 Enterprises, is one of China’s leading State owned infrastructure enterprises with specialist expertise in water treatment, waste management, mass transit railway and toll roads. In addition, BCG is one of China’s most prominent real estate developers. BCG had in December 2013 total assets and revenues exceeding US$21 billion and US$3.7 billion respectively and employs around 20,000 people across its regional and international businesses.

BCG has entered into an agreement with Transpacific Industries Group Ltd (ASX:TPI) to acquire their New Zealand business, Transpacific New Zealand (TPI NZ), for NZ$950 million.

Mr. Wang Hao, Group CEO and Deputy Chairman of BCG, said that, “BCG’s acquisition of TPI NZ, which is its first ever investment in New Zealand and major acquisition outside China, represents a strategic investment into the country’s integrated waste management sector. The investment carries significant and mutual technical and commercial benefits for both companies and will open further strong commercial links between the New Zealand and Chinese markets. BCG believes substantial scope exists for cross border co-operation given the technical knowledge base of TPI NZ Management in areas such as landfill and local area environment management and the extensive scale of waste-sector investment opportunities in China and New Zealand.”

BCG operates major landfill in China and is a recognised leader in China’s solid waste treatment industry. It is also a key investor in major transport infrastructure around Beijing and one of the largest water companies in China, with a total water treatment capacity of nearly 15 million tons per day, serving a population of 30 million.

Completion of the sale is expected to occur by the end of June 2014, subject to the satisfaction of a small number of customary conditions precedent, including obtaining consent from the New Zealand Overseas Investment Office and Chinese regulatory approvals. These processes have commenced.

TPI NZ is the leading waste management company in New Zealand, with revenue of approximately NZ$369 million and earnings of approximately NZ$107 million in the 2013 financial year. TPI NZ has an established national network of vertically integrated local waste systems. The company has around 1,100 employees, 800 vehicles, 29 refuse transfer stations and 5 landfills.

The Management team of TPI NZ will remain in place with the company continuing to operate as usual and focusing on safety and quality waste solutions.

HSBC acted as financial advisor to BCG. Allens, Russell McVeagh and Jun He acted as joint legal counsel to BCG.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news