I Am a Nobleman in England

Chapter 204 Unexpected Harvest

Ka Ka Ka—”

The next day, the acquisition negotiating team headed by Arthur had their first meeting with the chairman of the power plant in front of the main entrance of the main building of the coastal power plant, witnessed by some media reporters.

After the two parties finished 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.

Acquiring a company is not that simple, especially this time Arthur is going to acquire Bristol's coastal (natural gas) power station as a whole, and the overall acquisition means that the company determines the merger price based on assets, and the acquisition company has the target Mergers and acquisitions of the company's entire property rights.

Therefore, the consequence of the overall acquisition of the company is that the acquirer annexes all of the target company. After the acquisition process is completed, the target company no longer exists alone and becomes a part of the acquirer. All management rights, control rights, and domination rights are held by the acquirer.

However, this acquisition method may have the greatest risk, because it will involve the company's creditor's rights and debts. If you are a little careless and do not do due diligence, it may cause some unnecessary losses to the acquirer.

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

Because only after signing the framework agreement, the acquisition team headed by Angela can conduct due diligence on the power plant from three aspects of business, finance and law more easily and conveniently. Including interviews with senior executives, visits, inspection of legal materials, audits, etc. It will take almost a week for these to spread down.

Fortunately, for this acquisition, one is willing to buy and the other is willing to sell, each takes what they need, and the power plant has eliminated all unstable factors and obstacles, and strives to facilitate this acquisition. Therefore, regarding the core Negotiations on business terms did not last long, and the two parties successfully signed a framework agreement.

The other members of the acquisition team were left behind. With the cooperation of the management of the power plant, they officially entered the power plant and began to conduct a comprehensive investigation and audit. Accompanied, step into the factory area and have a tour.

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

"...In the entire area, the main factory building is the absolute center of the entire factory area. The design of other buildings must be carried out around this center. The front factory building 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,

A group of people followed step by step, and the chairman of the power plant smiled and introduced the whole factory area to Arthur.

When the other party noticed that Arthur was looking at the four chimneys emitting white smoke, he couldn't help explaining with a smile: "Compared with coal-fired power generation, natural gas power generation has multiple advantages. Gas-fired power generation hardly emits SO2, smoke, nitrogen, etc. The emission of oxides is only one tenth of that of coal-fired power generation, which has high environmental protection value.

In addition, gas-fired units can be started and stopped flexibly, which is convenient for peak regulation of the power grid. . . "

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

"Indeed, but from the perspective of the power grid, electricity is an indifferent commodity, and the on-grid electricity price of gas is higher than that of coal-fired power generation. In order to pursue economic interests, the power grid prefers low-cost electricity such as coal power.

Fuel costs account for about 70% to 80% 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 plants. "

"Hehe, this is indeed a big problem that cannot be avoided, but in the next ten years, about one-fifth of the UK's power generation capacity will be shut down, mostly old coal-fired power plants that do not meet EU environmental standards.

According to government plans, these closed power plants will be replaced by new nuclear reactors and offshore wind farms. However, the plan was delayed due to government policy uncertainty and the economic crisis.

The gas-fired power plants that have been strongly encouraged by the government have also not been built. As a result, the backup power generation capacity will be very tight. According to the data I have, it will drop from the current 15% to extremely low within three years. Dangerous five percent. The government definitely underestimated the power crisis that the UK will face in the next three years, and the danger of power outages does exist.

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 backup support for wind farms. "

Hearing these words, Arthur couldn't help but look at Garris Raymond, the chairman of the power plant who had a very low sense of presence in the materials and in reality. He didn't expect that the other party was not an incompetent mascot. On the contrary, he is a very forward-looking leader.

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

"Hehe, thank you for your invitation, and thank you for your attention, but I'm sorry..." Gareth Raymond shook his head with a chuckle, and after a short pause, he lowered his voice and said to Arthur: "I will go back this time, just To be in the UK Department of Energy and Climate Change, so I have to live up to your kindness."

"I see. Congratulations. It seems that Mr. Raymond will take care of you in the future." Arthur's eyes lit up slightly. It turned out that he was going to be promoted, and he happened to be in the energy management department. You can deepen your friendship with each other.

"Hehe, to be honest, it's all thanks to Your Excellency's acquisition, otherwise I might miss this opportunity and continue to be trapped here." As a politician, Gareth Raymond would naturally not let go of the result. JIAO Arthur, such a young billionaire, must know that if he only has ambitions and ambitions, he cannot do without the support of rich people like Arthur, entrepreneurs and people with social influence.

Arthur naturally heard the politeness in the other party's words, and also felt the other party's intention to make friends. This was undoubtedly a hit-and-miss rhythm, and the atmosphere of the communication between the two became more relaxed and casual afterwards.

For Arthur, this is definitely an unexpected big gain. After all, for Arthur now, in fact, what he lacks the most is the contacts and JIAO network in the upper class in England.

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

Arthur clearly remembered that a famous entrepreneur in China once said, first of all, don’t save money. If you want to save skills, you can’t save money. If you can save contacts, you can’t save money.

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

Therefore, making more friends and making fewer enemies is a way of survival and development, and it is also a very high wisdom in life.

"...The power generation company is responsible for the investment and operation of gas-fired power plants. It purchases natural gas from upstream gas suppliers and converts it into electricity, and sells it to downstream power grid companies at the on-grid electricity price.

You also said before that the cost of materials accounts for about 70 to 80% of the operating costs of gas-fired power plants. Natural gas prices are an important factor affecting the income of gas-fired power generation. Therefore, my suggestion to you is to supply gas with upstream natural gas. Deal directly with suppliers, pay reasonable gas transmission fees, and minimize intermediate transaction links and transaction costs. "

Arthur and Garris stood in front of the natural gas pipeline, and Garris suggested to Arthur with a smile, "Although this may cause some losses due to hoarding and price fluctuations, in the long run, it is still profitable. After all, who There is also no way to grasp the price trend of natural gas."

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

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