National Grid acquisition of the XJ, the high level group by the SASAC approval, the "separation of major" reform embarrassment
February 11, 2010, the State Grid Corporation of leading enterprises in the domestic electrical equipment, XJ Group, the Group's acquisition of Peace high end and so to the approval of the SASAC. Despite the need to NDRC, the Commission and other approvals,glue stick but in some the industry view, the SASAC has approved the acquisition of National Grid Company has removed most of the obstacles.
National Grid on the upstream of the upstream acquisition of core assets,glue stick a direct result of the China Machinery Industry Federation (hereinafter referred to as the machine copy) of the protests, but also raised the specter of electricity reform, "separation of major" is also do a go of suspicion. United appears in the machine, a set of standards, equipment manufacturing, tendering and procurement, and other multiple roles as a birth of the giant power company, not conducive to fair and just competition, but also not conducive to the overall competitiveness of China Electric Manufacturing force increase.
In 2002 the State Council formulated the power reform program, to determine the "Changwangfenkai" "separation of major," "main multi-separation" "separation of transmission and distribution" of the reform. Accordance with the "separation of major," the spirit of the national grid company should divest all non-network assets, including in the power design, equipment manufacturing, electric power construction work of the two units, and has drawn from the local power company to a non-network assets, such as ASTRI and the National Network of two appliances and other ICT.
However, after eight years, the stripping of non-network assets, not only did the national grid against the "bigger and stronger," "Business Integration" on the grounds of the leading electrical manufacturing business mergers and acquisitions, and access to the SASAC approval. Status of Power Industry Reform in China cause for regret.
Comeback.
July 17, 2009, the State Grid Corporation, a wholly owned subsidiary of State Grid International Technology Equipment Co., Ltd. (hereinafter referred to State Grid and equipment company) and signed an agreement Pingdingshan SASAC, unpaid transferee of the high level group which holds 100% of the equity. High level group of equity transfer is completed, the State Grid equipment will become the only shareholder of the Group of high level, directly and indirectly holds high level group's high level of electrical listed 24.91% of the shares.
On the same day, a wholly owned subsidiary of State Grid Corporation of China Electric Power Research Institute (hereinafter referred to China EPRI) and Ping An Trust and Investment Corporation, XJ Group signed a "framework agreement" to increase their investment by China EPRI get 60% of XJ Group shares, as the controlling shareholder of Ping An Trust replaced.
High-level Group and China's XJ Group is a leading enterprise of electrical equipment. High level group mainly produces high voltage electrical switchgear, in 2008 sales revenue of 8.102 billion yuan. National Grid has been a high level of electrical largest user, the annual purchase orders for all of the company accounted for more than 60%. China's XJ Group is the production of power system automation, relay protection and power transmission equipment of the old enterprises, in 2008 sales revenue of 5.02 billion yuan.
Dissenting on the acquisition of United in the machine that the acquisition of two against the spirit of fair competition, because outside of the national grid system electrical manufacturing companies, will be more difficult for competing orders. Machinery industry, according to an internal material disclosed in a recent large-scale pumped storage units converter, excitation system and other key ancillary equipment bidding, the State Grid Corporation of not to tender, it will order the country to its wholly owned subsidiary of Net Electric Power Research Institute (EPRI under the State Grid said.)
The machines together through various means, to the Central Policy Research Office, State Council Research Office, the Ministry of Industry and Information Technology, National Development and Reform Commission, SASAC and other government departments issued a call for proposals to stop the development of the national grid system directly under the equipment manufacturing practices. Two signs of the acquisition was a stranding, but this year February 11, the State Grid Corporation or received a State-"High-level Group Co., Ltd. on free transfer of state-owned property rights issues related to approval" and "shares on the XJ Electric Co. shareholders to change the nature of the issue of approval "(State assets the right [2010] 102), to obtain approval for the final important step.
Subversion "separation of major"?
Merger of these two piles is not limited to the field of fair competition in the industry, but also related to electricity reform "separation of major" direction. Electricity reform program in accordance with the arrangements, "separation of major" should, following the end of 2002, "Changwangfenkai" The next step after the reform of content and the scheduled timetable should be completed long ago. Initial motivation was to find out the true cost of grid operators - if only transmission grid company main business is costing more clear and simple.
The end of 2004, the program reported to the decision-making. However, for two consecutive years of "power shortage" slow the pace of reform. "Power shortage", the "separation of major" reform and the formation of the program several times, were left stranded because of the resistance is too large. The end of 2007, "separation of major" reform program after five years of ups and downs, and finally in basic agreement between the ministries, will report the State Council for approval. Unexpectedly, but by the snowstorm in early 2008, renewable accident. A lot of damage to facilities due to China Southern Power Grid, but also caused controversy for the network investment model.
Secondary industry, taking into account the electricity workers were generally faced with some of the large number of poor-quality assets, social burden of heavy, difficult to separate the practical difficulties, the state in May 2007 announced the public tender sale of 9.2 million kilowatts of generation assets, commonly called "920" project, realized 18.7 billion of funds available to cover the "separation of major" cost of reform. Assets sold more than two years now, but still not the main and auxiliary material to promote sharing.
Zhou Xiaoqian National Grid senior adviser told reporters that publication, the question is: 18.7 billion sufficient to cover the cost of separation of the reform, secondary industry, whether the staff is willing to be separated; Another obstacle is the most critical is the change agents and Power Grid Company of the "secondary sector" can not reach a consensus definition of long-term.
Consensus in the industry, hotels, hospitals, schools and various other business enterprises are secondary industry - in fact, this part of the assets as early as 2005 years ago, the basic stripping is completed, but the power design, construction, building, etc. are also part of Power Construction Company "secondary sector"? Spirit of the document according to the power system, electrical construction business is secondary industry, but power companies to a different view.
Especially after the snow storm in early 2008, the State Grid Corporation of stressed and Design Institute of Power Transmission and Distribution of electricity and the main industry is closely related and should remain among the main industry. There are also privately complained that, since the fundamental goal of enterprise development is to create profit, the development of secondary industry is to create profits, loss of the main business the more the more necessary to find new profit growth point.
Zhou Xiaoqian that the "secondary sector" the word itself is very vague and enterprises to seek their own development, often need to get involved in different segments of the industry chain, reflecting the integration advantages. If the network is to carry out M & auxiliary equipment manufacturing upstream industry, then the power companies buy coal, oil companies into whether it is engaged in production and auxiliary equipment manufacturing industry?
"Not an absolute limit expansion of industrial chain, the key to whether the expansion of monopoly, the formation of a monopoly interests." Zhou Xiaoqian said.
Expansion of non-stop.
Although the national grid is very little in public to do its own defense industry chain expansion, but the action does not neglect. 2005, the State Grid to spend at least ten billion acquisition and integration of its financial assets, the Trust acquired 51% of Great Britain and shares and securities brokerage brokerage Wei deep 55% of the shares.
In 2009, broke into the National Grid acquisition of manufacturing equipment. In addition to planning for the acquisition of XJ Group, the Group's share high of peace, through the national grid and the State Grid of China EPRI EPRI both platforms, and actively incorporate various types of electrical local electrical equipment manufacturers. For example, the State Grid EPRI NARI Group subsidiary acquired in 2009, respectively, wire and cable manufacturers in the power cable company in Jiangsu Silver Dragon, Jiangsu Huai Sheng Cable Co., Ltd., as well as in circuit breakers, transformers and other electrical equipment amorphous alloy manufacturing Jiangsu Pa Weier Electric Co. June 2009, NARI Group has acquired Power Technology Co., Ltd. Anhui Province following the far away and following the Software.
It is understood that only the State Grid Corporation issued annually to two appliances ASTRI assessment indicators, also raised 2012 sales income of 800 billion target. National Grid EPRI 2009 operating revenues of more than 80 billion yuan, while the goal to be achieved in 2012 is 300 billion; China EPRI 2009 billions of scale breaking, and to achieve 2012 sales target is 500 billion. To achieve such a "Great Leap Forward", it is impossible to rely on existing industries, and large-scale mergers and acquisitions are inevitable.
Against this background, Shun Huang Shouhong securities analysts to forecast in February of this year, in addition to high level, XJ, State Power South, Siyuan Electric, TBEA, Hidenobu shares, Tianwei change and other electrical equipment manufacturers listed companies may be gradually incorporated into the national grid in the capsule.
Since the development of the national grid from their own considerations, to make against the Government's electricity reform act, why the government department or approved? Does this mean that "separation of major" reforms die a natural death, or policy makers but also the default of "secondary sector" should be redefined?
A State Electricity Regulatory Commission for many years to promote the "separation of major" reform of the persons in the interview that he did not believe that "separation of major" not, or there is no need to engage, "in fact still do", but " emerged into the new secondary business case. "
The inconvenience to be named, said those who criticized the SAC should not be hastily approved, because it is not only a corporate restructuring, the overall situation is more involved in electricity reform, the SASAC should not act as the protector of state-owned enterprises is conducive to "bigger and stronger" to approved, but should listen and respect the views of other regulators.
"Secondary business does not need to re-define. file (power system files) made it very clear that monopoly power should withdraw from the competitive field. Grid with power companies, oil is different from the latter competition, a monopoly of the former . "The SERC people with respect," SASAC direction of electricity reform lack a deep understanding, the National Development and Reform Commission is the power to change the main driver. "Therefore, does not preclude the State Development and Reform Commission or the Commission ultimately rejected the possibility of acquisition of the pile.
Huang Shou Shun Securities analyst believes that the local equipment manufacturers to focus from the provincial power company owned by EPRI National Grid, which can also be seen as partial "separation of major." SASAC will not rule out future ASTRI two appliances from the national grid independent of, the formation of a true "separation of major."