Beijing Capital Group, a state owned infrastructure enterprise, has agreed to buy the biggest waste management firm in New Zealand from Australia's Transpacific Industries Group Ltd, for NZ$950 million (US$769 million).

Transpacific's New Zealand waste business specializes in environmentally friendly landfill methods, odor management and hazardous waste handling and is well positioned to benefit from the measures taken by China to tackle pollution.

Wang Hao, CEO and deputy chairman of Beijing Capital, stated:

BCG's acquisition of Transpacific NZ, which is its first-ever investment in New Zealand and major acquisition outside China, represents a strategic investment into the country's integrated waste management sector. The investment carries significant and mutual technical and commercial benefits for both companies and will open further strong commercial links between the New Zealand and Chinese markets.

The deal, which is expected to close by the end of June, will improve Transpacific's financial position helping it refinance a syndicated-debt facility.

Beijing Capital Group is owned by the Beijing municipal government and it has assets worth US$21 billion at the end of last year.

The deal comes just over a year after Cheung Kong Infrastructure Holdings bought Envirowaste, New Zealand's second largest waste management company behind Transpacific, for NZ$490 million.