Shanghai Electric, a Chinese group listed on the Hong Kong Stock Exchange and a world leader in the manufacture of power generation equipment and other machinery, won the auction for the 40 pct stake in the shareholders’ capital of Ansaldo Energia an Italian group and an international leader as a suppler, installer and service provider for power generation plants and components. The seller is Italian government sponsored investment veichle, Fondo Strategico Italiano (FSI).
The deal has a 400 million euros value and includes the creation of two joint ventures between Ansaldo and Shangai Electric for manufacturing of gas turbines for Asian markets and the creation of an R&D centre in Shanghai: both synergies with the Genoa plant (download here the FSI press release and the one by Shangai Electric).
The deal has been announced last Thursday May 8th at the presence of Italian Premier, Matteo Renzi, the top manager of FSI (chairman Giovanni Gorno Tempini and ceo Maurizio Tamagnini) and Italian government’s Cassa Depositi e Prestiti (chairman Franco Bassanini).
Last Autumn the FSI announced the acquisition from US private equity fund First Reserve of a 45pct stake in Ansaldo Energia shareholders’ capital. At the same time FSI acquired a 40pct stake from Finmeccanica (the leading aerosapce and defence group controlled by the Italian govermennt) and signed and agreement to acquire the last 15pct stake owned by Finmeccanica by 2017. The agreement said that in next few months FSI would have sold a stake of Ansaldo to an industrial partner keeping the controlling majority in the group. The medium term target being Ansaldo Energia to be listed on the Italian Stock Exchange (download here the press release).
Shangai Electric beated offers from Cinese colleague China State Grid and Japanese Mitsubishii. In the last months negotiations had been held insted with korean Doosan Heavy Industries and some potential US investors such as General Electric or Teco-Westinghouse.
At last Doosan signed a cooperation agreement with Ansaldo Energia, which was announced last May 8th too. The Italian group will undertake an R&D technology cooperation initiative with the Korean group to develop a new gas turbine for countries with 60 Hz grids (North America, Brazil, Saudi Arabia, South Korea). The project will receive partial financing from the South Korean government. Thanks to the agreement, over the next 7 years AEN will establish a presence in 100% of the markets for gas turbines, with major benefits for the Genoa R&D centre (100 new engineers hired, 35 in the first year).
The deal with Shangai Electric, instead, will bring a 20% increase in Ansaldo’s turnover in the medium-to-long-term period, 3-4 new units a year in new turbines manufactured in Genoa, 500 new jobs, including positive employment impact on other companies working with Ansaldo Energia and 35 new Ansaldo engineers in 7 years
Cloasing of the deal is expected by the end of the year. Advisors for the deal to Shangai Electric were Rothschild and Bonelli Erede Pappalardo law firm. Fondo Strategico and Cassa Depositi e Prestiti were supported by Lazard and Gianni Origoni Grippo Cappelli & Partners law firm.
