Chapter 204: An Unexpected Harvest

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The next day, the takeover negotiation team, led by Arthur, met for the first time in front of the main entrance of the main building of the Coastal Power Plant and the chairman of the power plant, witnessed by some media reporters.

After the two sides completed the polite greetings in a friendly atmosphere, they walked into the building together and went straight to the conference room, ready to start negotiations on every detail.

The acquisition of a company is not so simple, especially this time Arthur is to acquire Bristol's coastal (natural gas) power station as a whole, and the overall acquisition refers to the merger and acquisition of the enterprise based on assets, the acquisition price is determined, and the acquisition enterprise has all the property rights of the target company.

Therefore, the consequence of the overall acquisition of the company is that the acquirer swallows up all of the target company, and after the completion of the acquisition process, the target company ceases to exist separately and becomes a part of the acquirer, and all the right to operate, control and dominate is held by the acquirer.

However, this kind of acquisition may have the greatest risk, because it will involve the creditor's rights and debts of the enterprise, and if you are careless and do not do due diligence, it may cause some unnecessary losses to the acquirer.

The purpose of Arthur's personal presence today is to come and negotiate with the other party on the core business terms and sign the acquisition framework agreement.

Because only by signing the framework agreement, the acquisition team headed by Angela can conduct due diligence on the power plant from three aspects: business, finance and law. Including interviews, interviews, legal information, audits, etc. It would take about a week for these spreads to come down.

Fortunately, one is willing to buy and the other is willing to sell, each taking what they need, and the power plant has eliminated all the unstable factors and obstacles to promote the acquisition, so the negotiations on the core commercial terms did not last long, and the two sides successfully signed the framework agreement.

The other members of the acquisition team, with the cooperation of the management of the power plant, officially settled in the power plant and began to conduct a full range of investigations and audits.

Under the blue sky, four towering tall chimneys are emitting white smoke outward, and the buildings of the entire factory area are built in the shape of rectangles and squares, which makes it look very neat and atmospheric.

“。。。 In the whole area, the main plant is the absolute center of the whole plant, and the design of other buildings must be carried out around this center, and the building in front of the factory is a center of the factory area and the center of personnel activities. ”

Arthur and the chairman of the power plant walked side by side, and a group of people followed behind him, and the chairman of the power plant smiled and kept introducing Arthur to the entire plant.

When the other party noticed that Arthur's eyes were on the four white smoke chimneys, he couldn't help but smile and explained: "Compared with coal-fired power generation, natural gas power generation has multiple advantages. Gas-fired power generation emits almost no SO2 and soot, and the emission of nitrogen oxides is only one-tenth of that of coal-fired power generation, which has high environmental protection value.

In addition, the gas unit starts and stops flexibly, which is convenient for peak regulation of the power grid... ”

Arthur is very clear about the benefits of these natural gas power generation, and as a buyer, he naturally will not follow the other party's line of thought to just talk about the advantages.

"Indeed, however, from the perspective of the power grid, electricity is an indiscriminate commodity, and the feed-in tariff for gas is higher than that for coal-fired power generation, the grid prefers low-cost power such as coal power in pursuit of economic interests.

Fuel costs account for about 70 to 80 percent of the operating costs of gas-fired power plants, and natural gas prices are one of the most important factors affecting the economics of gas-fired power generation. ”

"Hehe, this is a big problem that can't be avoided, but in the next decade, about a fifth of the UK's generation capacity will be shut down, mostly old coal-fired power plants that don't meet EU environmental standards.

According to the government's plan, these closed power plants will be replaced by new nuclear reactors and offshore wind sites. However, the plan was delayed due to uncertainties in government policy and the economic crisis.

Gas-fired power plants, which have been strongly encouraged by the government, have also not been built, and as a result, backup power generation capacity will be very tight, and according to the data I have, it will drop from the current 15 percent to the extremely dangerous 5 percent within three years. The government is definitely underestimating the power crisis that the UK will face in the next three years, and the danger of blackouts is real.

Therefore, in the near future, the government will definitely introduce a series of incentive bills to encourage gas-fired power plants that are considered as back-up support for wind farms. ”

Hearing this, Arthur couldn't help but look at Gallis Raymond, the chairman of the power plant who had a very low sense of existence in the data and in reality, but he didn't expect that the other party was not an incompetent mascot, not only was he not incapable, but he was a very forward-looking leader.

"Mr. Raymond, when the acquisition is completed, I would like to invite you to become the CEO of the power plant, I wonder if you are interested?"

"Hehe, thank you for the invitation, and thank you for your attention, but I'm sorry... Garris Raymond chuckled and shook his head, and after a slight pause, he lowered his voice and said to Arthur: "When I go back this time, I will enter the British Department of Energy and Climate Change, so I can only live up to Your Excellency's kindness." ”

"I see, congratulations, it seems that in the future, Mr. Raymond will have to take care of it more. Arthur's eyes lit up slightly, it turned out that they were about to be promoted, and they happened to be in charge of the energy department, which could deepen the friendship between them.

"Hehe, seriously, it's thanks to your acquisition, otherwise I might have missed this opportunity and remained trapped here. "GARIS RAYMOND, AS A POLITICIAN, NATURALLY WILL NOT LET GO OF SUCH A YOUNG BILLIONAIRE AS YA JIAO, YOU KNOW, IF HE ONLY HAS AMBITION AND AMBITION, HE CAN'T DO WITHOUT THE SUPPORT OF A RICH, ENTREPRENEUR AND SOCIAL INFLUENCER LIKE ARTHUR.

Arthur naturally heard the politeness in the other party's words, and also felt the other party's intention to tie up, which was undoubtedly a rhythm of hitting it off, and then the atmosphere of the two exchanges became more relaxed and casual.

This is definitely a big unexpected gain for Arthur, after all, for Arthur now, in fact, what he lacks most is his connections and JIAO network in the upper echelons of the UK.

If you don't improve your social level and integrate into the upper class, who will agree with you, and how can you get a good project?

Arthur clearly remembers that a famous entrepreneur in the Celestial Empire once said, first of all, don't save money, save your skills without saving money, save connections without saving money, what can you do without connections?

Of course, the premise is that you must also have the ability, and if you don't have the ability, it is useless to have connections.

Therefore, making more friends and making fewer enemies is a way to survive and develop, and it is also a high wisdom in life.

“。。 Power generation enterprises are responsible for the investment and operation of gas-fired power plants, which purchase natural gas from upstream gas suppliers and convert it into electricity, and sell it to downstream power grid companies according to feed-in tariffs.

As you said before, the cost of gas power plants accounts for about 70 to 80 percent of the operating costs, and the price of natural gas is an important reason for the revenue of gas-fired power generation. ”

Arthur and Garris stood in front of the gas pipeline, and Garris smiled and proposed to Arthur, "Although this may cause some losses due to hoarding and price fluctuations, it will still be profitable in the long run." After all, no one can grasp the price trend of natural gas. “

"Well, I've also thought about this plan, and in the case that the price of electricity can't be raised in the short term, I can only find a way from the upstream... Arthur also nodded in agreement, but he didn't tell the other party that he wanted to solve the upstream problem once and for all.