BBVA Corporate & Investment Banking acted as sole financial advisor to French company Suez Environnement and Mexican group Peñoles in the disposal of their water management business in Cancun.

This concession was managed by both companies through a 50/50 joint venture and its disposal becomes the largest water transaction ever in Mexico and Central America.

Bal-Ondeo owned a 49,9% of Desarrollos Hidráulicos de Cancún (DHC), with Grupo Mexicano de Desarrollo (GMD) as a partner. PDM, a company related to GMD, has acquired the remaining share of DHC.

The Cancun concession, granted in 1993 for a period of 30 years, it were sold by an bidding process in which 10 non binding buying offers between potential Mexican and international buyers.

DHC manages the water and wastewater cycle in the municipalities of Benito Juarez (Cancun) and Playa Mujeres, with one million inhabitants and three million tourist per year. 

In Mexico, BBVA has acted as sole financial advisor to 15 transactions since 2012, establishing itself as M&A leading advisor in the country.

This is the second transaction of BBVA with French clients in 2013, following the sale of Veolia Water's assets in Portugal.