Veolia Water has agreed to sell the UK regulated water activities of Veolia Environnement to Rift Acquisitions for a total of £1.2 billion.
Veolia Water is a wholly-owned subsidiary of Paris-based Veolia Environnement, which is currently working to reduce its net debt.
In 2011, the French company announced plans to divest €5 billion of assets before the end of 2013. This divesture marks the first significant step in that programme, bringing the company’s net debt down by around £1.1 billion as a result of the sale.
In addition to its non-regulated water business, Veolia Environnement will retain an interest in the UK regulated water business through Veolia Water UK's retained 10 per cent equity interest in the divested business for a period of at least five years.
Commenting on the news, Antoine Frerot, chairman and chief executive officer of Veolia Environnement, said: "This first significant divestment shows that we are moving in the right direction regarding the implementation of our strategic plan and that the transformation of Veolia is progressing at a good pace."
With more than 330,000 employees, Veolia Environnement provides solutions to meet the needs of municipal and industrial customers in four segments: water management, waste management, energy management and passenger transportation. The company recorded revenue of €29.6 billion in 2011.
