Veolia sells Israel water business to Oaktree Capital

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Veolia sells Israel water business to Oaktree Capital

Veolia Environnement SA has agreed to sell its water, waste and energy activities in Israel to funds managed by Oaktree Capital Management LP.

The transaction, which will allow Veolia to cut debt by about €250 million ($341 million), is part of Veolia's strategy to refocus the group geographically and to concentrate on areas where it can seize less capital intensive opportunities, as defined by its Chairman and Chief Executive Officer Antoine Frérot at the end of 2011.

Closing of the transaction is subject to the approval of the Israeli Antitrust Authority and change of control authorizations common in such transactions. It is expected by Q4 2014.

The agreement also includes the 50 percent stake Veolia has in the Ashkelon desalination plant. The 396,000m³/d facility is one of the world's largest SWRO plants. Veolia holds a 50% equity stake in the plant, which operates under a long-term BOT contract. It also has a 59.5% stake in the plant operating company, Adom.
The Veolia announcement comes less than a month after the Azrieli Group announced it had signed an MOU with the Israel Infrastructure Fund to sell the 300,000m³/d Palmachim desalination plant for NIS430 million ($125 million).

Veolia has over 200,000 employees worldwide. The company designs and provides water, waste and energy management solutions that contribute to the sustainable development of communities and industries. 

In 2013, Veolia supplied 94 million people with drinking water and 62 million people with wastewater service, produced 86 million megawatt hours of energy and converted 38 million metric tons of waste into new materials and energy.

Share this news