I'm LongbridgeAI, I can summarize articles.FEIDA ENVIRO plans to acquire 95% equity of Zhuji Baosheng held by its controlling shareholder, Environmental Group, for 71.2847 million yuan. After the transaction, Zhuji Baosheng will become a wholly-owned subsidiary. This move aims to eliminate the same industry competition with Environmental Group in the field of air pollution control and promote the implementation of commitments to reduce such competition
According to the Zhitong Finance APP, FEIDA ENVIRO (600526.SH) announced that the company intends to acquire 95% of the equity of Zhuji Baosheng Environmental Technology Co., Ltd. (referred to as: Zhuji Baosheng) held by its controlling shareholder, Zhejiang Environmental Protection Group Co., Ltd. (referred to as: Environmental Protection Group), for a transaction price of RMB 71.2847 million, with an asset appraisal appreciation rate of 3.90%. Upon completion of this transaction, Zhuji Baosheng will become a wholly-owned subsidiary of the company and will be included in the company's consolidated financial statements.
The company's main business is air pollution control and domestic environmental water services, while Zhuji Baosheng mainly engages in air pollution control-related businesses. This transaction primarily aims to eliminate the issue of horizontal competition between the Environmental Protection Group and the company in the field of air pollution control, and it is also a strong measure for the Environmental Protection Group to implement the commitments outlined in the "Commitment Letter to Avoid Horizontal Competition" and further promote the reduction of horizontal competition