Water metering international mergers and acquisitions hit the Chinese market

[China Instrument Network Instrumentation Market] Capitalist dramas are happening every year. There are endless acquisitions and acquisitions. People who eat melons can't accurately guess the intentions, but they can also feel that these big brothers appear to be cloudless. The small and light decisions are closely related to the company’s capital status, market distribution, and policy adjustments. In 2016, the water metering industry staged multiple mergers and acquisitions on a global scale. They not only brought about changes in the development of enterprises, but even affected the Chinese water market.

The matter began in mid-August last year, and the supplier of smart water and sewage treatment solutions, Xylem, announced that it will acquire US Sensus (US Sensus) for US$1.7 billion. The target company is dedicated to providing smart meters, network technology and data analysis services for the water, power and gas industries. Its metering devices are widely installed worldwide, and the smart technology is also in the leading position in the industry. More importantly, one-fifth of Sensus's main business is in China.

This helped Sensus to stand out from the expectation of selling water meter companies and become the target of the final selection of Xylem. People in the industry should all understand that Xylem has never concealed his ambitions in China's water market, and after many years of laying and operating, he has successfully occupied a certain position in China. The 2014 Xylem performance report was impressive. During the year, the company’s global operating income increased by 4%, which was entirely due to the contribution made by the Chinese market, which saved the decline in other regions.

Recently, the company's president, Pan Deke, has publicly stated that he is full of confidence in China's water and environmental protection markets. It is not difficult to find out after the detailed experience. This self-confidence not only comes from the affirmation of its own technology, but also the decision-makers must have felt the domestic market of water treatment. From the “Water Ten Articles” promulgated in 2015 to the “Thirteenth Five-Year Plan” issued in 2016, the escort of this series of policies and regulations has caused the environmental monitoring market to have a market size of over RMB 120 billion. With such a large "cake", the goal of splitting the cup can still be achieved.

In fact, more people in the industry still hope that “cakes” can enter the mouth of their own companies. As the old saying goes, the current status of domestic enterprises is to consider whether they can “eat” or not. problem. Early and late start-ups, and gaps in foreign countries that need to accumulate to solve the old-fashioned issues, I believe we all understand. Throughout 2016, the performance of domestic water metering companies is also remarkable. The fact that the development of intelligence and automation has made the cost advantage of manpower gone is finally accepted by domestic companies. It is not only the metering field. Other domestic companies such as electric meters and gas meters have also tried to upgrade their technologies to stabilize their position. Some manufacturers even set up their own brands by learning from foreign technologies and developing new products suitable for the local market based on them. This practice of climbing up on the "giant's shoulder" may still have drawbacks, but the awareness of awakening and the attitude of learning are worthy of appreciation.

Only in this era of rapid development of information technology, there are not many time left for companies to wait and see. The domestic market is already in an eruption, and foreign countries are also the same. Areas such as Vietnam and Arab countries have been accelerating the process of privatization of water services. The cooperation between Australian water technology companies and Chinese water companies has also become more frequent. Local instrument companies are still not showing up.

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