Beijing Enterprises Holdings (BEHL) has entered into an agreement with EQT Infrastructure II (EQT) to acquire German-based EEW Energy from Waste (EEW), for approximately €1.4bn.
Claimed to be one of the largest energy-from-waste firms in the country, EEW operates 18 waste-incineration facilities.
The facilities generate process steam for industrial companies and district heating for residential areas, as well as environmentally compatible electricity for around 700,000 households.
BEHL executive director and vice-president Xinhao Jiang said: "EEW has an exceptional management team, solid track record, and strong expertise in constructing, operating and optimising state-of-the-art, energy-from-waste plants.
"We are confident that this transaction will introduce EEW’s operation excellence and know-how to the Chinese market, and improve our operation efficiency and management standards of waste business in China."
The Wall Street Journal reported that the facilities will generate around 1,900GW of electricity and 3,000GW of heat from waste every year.
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Subject to the approval of German Foreign Trade and Payments Ordinance, the deal is expected to complete in the second quarter of this year.
EEW CEO Bernard Kemper said: "EQT’s support and expertise have been instrumental to the optimisation of business processes at EEW, and have provided a solid foundation for the company’s further growth."
"We look forward to future success together with Beijing Enterprises Holdings, and to the continued development of the company."