China’s Beijing Enterprises has emerged as the frontrunner to acquire a German operator of waste burning power plants from private equity firm EQT for around €1.8 billion, according to people familiar with the matter.

The potential deal would be the latest in a shopping spree by Chinese companies and the largest Chinese acquisition of a German company on record, trumping China National Chemical's $1 billion purchase of machine maker KraussMaffei in January 2016.