Paris-based firm Veolia finalizes 50% stake acquisition held by FCC in Proactiva
Veolia Environnement announced the completion of its stake purchase in Proactiva Medio Ambiente from Fomento de Construcciones y Contratas (FCC). Veolia acquired 50% of the FCC stake for EUR150 million, according to 4Traders.
The said transaction makes Proactiva a wholly-owned subsidiary of Veolia Environnement. The deal will also enable Veolia to consolidate its water, waste management, and wastewater services in Latin America. This is in accordance with the company's development strategy in fast growing regions, the report said.
The acquisition will have a neutral impact on the leverage ratio objective of Veolia for 2014. The deal will be accretive to its net income starting 2014 before the purchase price allocation, the report stated. The consolidation of Proactiva in the group's accounts will commence on December 1, 2013, 4 Traders reported.
Veolia Environnement is a Paris-based environmental services company. The firm offers customized solutions for water management, energy management, and waste management, according to its company website.