Services Group FCC has reached an agreement to sell its 50 per cent stake in Latin American environmental services provider Proactiva Medio Ambiente, to Veolia Environnement for €150 million (£129 million). As a result, Veolia will own 100 per cent of Proactiva.
The agreement forms part of FCC's recently-announced Strategic Plan, which hopes to reduce group debt by €2.2 billion (£1.88 billion). The Proactiva deal will provide FCC with capital gains of €81 million (£69 million).
Proactiva, created in 1999, was formerly a 50:50 joint venture between Veolia Environnement and FCC. It operates in eight countries (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Venezuela); providing water management services in Guayaquil and Lima, and waste management services in Buenos Aires, Caracas, São Paulo and Santiago de Chile.
Speaking of the agreement, Juan Béjar, Vice-Chairman and Managing Director of FCC, commented: "The sale of our 50 per cent stake in Proactiva represents the first major step towards the divestment targets set out in the Strategic Plan, and will enable us to focus on the businesses that provide the most value to the group.”
Antoine Frérot, Chairman and CEO of Veolia Environnement, added: "Our larger stake in Proactiva is perfectly aligned with our strategy: to make the group a leader in addressing large-scale environmental problems in growth markets. As the sole shareholder of Proactiva, Veolia Environnement strengthens its position in industrial and municipal markets in Latin America, leveraging its global capacities, its existing footprint and references in the region, and Proactiva's network and team.”
Read more about Proactiva.
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