Kakka”

The next day, the acquisition negotiation team led by Arthur held its first meeting in front of the main building of the coastal power plant and the chairman of the power plant under the witness of some media reporters.

After completing polite greetings in a friendly atmosphere, the two sides entered the building together and headed straight to the conference room, preparing to start detailed negotiations.

Acquisition of a company is not that simple, especially this time Arthur wants to acquire the coastal (natural gas) power station in Bristol as a whole. The overall acquisition refers to the merger and acquisition behavior in which the company determines the merger and acquisition price based on assets and acquires the company's entire property rights of the target company.

Therefore, the consequence of the overall acquisition of the company is that the acquirer will acquire all the target company. After completing the acquisition process, the target company no longer exists alone and becomes part of the acquirer. All operating rights, control rights and control rights are controlled by the acquirer.

However, this acquisition method may have the greatest risks, because it will involve the company's creditor-debtor issues. If you are careless and do not conduct due diligence, it may cause some unnecessary losses to the acquirer.

The purpose of Arthur attending in person 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 a framework agreement and Angela's acquisition team can conduct due diligence on the power plant from business, finance and law, including interviews, visits, checking legal information, audits, etc. It will take about a week to pass through these.

Fortunately, in this acquisition, one is willing to buy and the other is willing to sell, and each takes the need. In addition, all unstable factors and obstacles have been eliminated in the power plant, and strives to promote the acquisition. Therefore, the negotiations on the core business terms did not last long, and the two parties successfully signed the framework agreement.

The other members of the acquisition team were left behind, and with the cooperation of the power plant management, they officially settled in the power plant and began a comprehensive investigation and audit. Arthur, the main owner, entered the factory area and visited the site, accompanied by the chairman of the power plant and the negotiator Corinna.

Under the blue sky, four tall chimneys are floating white smoke. The buildings in the entire factory are built in rectangular and square shapes, which makes them look very neat and atmospheric.

"...In the entire area, the main factory building is the absolute center of the entire factory area, and the design of other buildings must be carried out around this center. The front factory building in front 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 him step by step. The chairman of the power plant smiled and kept introducing Arthur to the entire factory area.

When the other party noticed that Arthur's eyes were on the four chimneys with white smoke, he couldn't help but smile and explained: "Compared with coal-fired power generation, natural gas power generation has multiple advantages. Gas power generation almost emits so2 and smoke, and nitrogen oxide emissions are only one-tenth of coal-fired power generation, which has high environmental value.

In addition, the gas unit is flexible in starting and stopping, making it easier to regulate peaks for the power grid..."

Arthur knew very well about the benefits of these natural gas power generation without the other party's need to be said, and as a buyer, he naturally would not follow the other party's ideas and talk about the advantages.

"Indeed, however, from the perspective of the power grid, electricity is an undifferentiated commodity, and the gas-fired power price is higher than the coal-fired power grid price. In order to pursue economic benefits, the power grid prefers low-cost power such as coal-fired power.

Fuel costs account for about 70 to 80% of the operating costs of gas power plants, and natural gas prices are one of the most important factors affecting the economy of gas power generation."

“Haha, this is indeed a big problem that cannot be avoided, but about one-fifth of the UK’s power generation capacity will be shut down in the next decade, and most of them are old coal-fired power plants that do not meet EU environmental standards.

According to the government's plan, these closed power plants will be replaced by new nuclear reactors and offshore wind farms. However, the plan has been delayed due to uncertain government policies and economic crisis.

The gas power plants that have been strongly encouraged by the government have also not been built. The result is that the backup power generation capacity will be very tight. According to the data I have, it will drop from 15% now to 5% extremely dangerous within three years. The government is currently absolutely underestimating the power crisis facing the UK in the next three years, and the risk of power outages does exist.

So, in the near future, the government will certainly introduce a series of incentive bills to encourage gas plants that are considered as backup support for wind farms.”

Hearing this, Arthur couldn't help but look at Garis Raymond, the chairman of the power plant, who had a very low presence in the data and in reality. He didn't expect that the other party was not a mascot with incapacity. Not only was it not a lack of ability, but a very forward-looking leader.

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

"Haha, thank you for your invitation, and thank you for your attention, but sorry..." Gary Sr. Raymond chuckled and shook his head. After a slight pause, he lowered his voice and said to Arthur: "I will enter the UK Department of Energy and Climate Change this time, so I can only let you down."

"So that's it. Congratulations. It seems that Mr. Raymond will take care of him more in the future." Arthur's eyes lit up slightly. It turned out that he was about to be promoted and was just the energy management department, which could deepen their relationship.

"Haha, to be honest, this is thanks to your acquisition, otherwise I might miss this opportunity and continue to be trapped here." As a politician, Gary Srmond naturally would not let go of such a young billionaire, Arthur. You must know that if he has ambition and ambition, 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 felt the other party's intentional relationship. This was undoubtedly a hit-and-out rhythm, and the atmosphere of the two of them communicating became more relaxed and casual.

This was definitely an unexpected gain for Arthur. After all, for Arthur now, what he lacked the most was his connections and inter-junctions in the upper class of Britain.

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

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

Of course, the premise is that you must have the ability, and if you don’t have the ability, you will be in vain if you have connections.

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

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

You have also said before that material costs account for about 70 to 80% of the operating costs of gas power plants. Natural gas prices are an important reason for affecting the income from gas power generation. Therefore, my advice to you is to directly trade with upstream natural gas suppliers, pay reasonable gas transmission fees, and minimize intermediate transaction links and transaction fees."

Arthur and Garys stood in front of the natural gas pipeline, and Garys smiled and suggested to Arthur, "Although this may cause some losses due to hoarding and price fluctuations, it is still profitable if calculated in the long run. After all, no one can grasp the price trend of natural gas."

"Well, I have thought of this plan too. If the electricity price cannot be raised in the short term, I can only find a way from the upstream..." Arthur nodded in agreement, but he did not tell the other party that he wanted to solve the upstream problem once and for all.
Chapter completed!