The French utility company, Veolia is going to be selling off a large number of its assets, which have been valued at over £4 billion. It has three water companies in the UK which it is selling off and it is also getting rid of its 50% share in the company Transdev.
These asset sales come after two profit warnings were issued earlier in the year. The credit outlook by the company has recently been lowered by Fitch and this has meant the company started a divestment plan. It is working to reduce its debt by €3 billion by the end of 2013.
The water companies the utility giant owns in the UK are responsible for providing water to three million people. They have been owned by the company since 1987 and they have a turnover of nearly £270 million. The company is the largest water utility provider in the world and it also has an interest in public transport, but after the removal of its share in Transdev it is no longer going to have an interest in that sector.
London Sovereign is owned by Transdev and is responsible for operating 12 bus routes in London. It also has significant interests in other cities outside of the capital and has shares in Nottingham City Transport.
Veolia has also announced that it will be aiming to sell its waste operations in the United States as it is intended to scale back the number of countries it is present in. Currently, the company operates in nearly 80 countries but it is looking to half that number in the near future.
The company said that they would focus their operations on Europe and Asia. Cost-cutting measures have also been introduced by the company which has meant that shareholders are not going to be well rewarded with dividends in the near future.