BBVA advises on the largest transaction in the water sector in Portugal since the start of the crisisMarch 22, 2013
BBVA Corporate & Investment Banking was the sole financial advisor to the seller in a cross-border transaction in which the French company Veolia Environnement has sold to the Chinese company Beijing Enterprises Water Group its water business in Portugal. This is the largest transaction in Water sector in Portugal since 2008.
BBVA, awarded "Best Investment Bank in Spain" in Global Finance Awards 2013, has advised the French company Veolia, a global leader environmental solutions, in the disposal of its Portuguese water business, Veolia Water Portugal, for a EUR 95 Mn cash consideration. The buyer is Beijing Enterprises Water Group, a leading integrated water system solutions provider in China, This transaction is in line with Veolia's Strategic Plan to focus on core geographies and activities, and debt reduction.
Founded in 1991, Veolia Water Portugal is an integrated water & wastewater management services company. It is one of the few private water operators in Portugal, providing water services to 670,000 people.
The Corporate Finance team, part of BBVA Corporate & Investment Banking, has managed to close this important transaction despite the challenging economic environment in Portugal. This is the largest transaction in the Water sector in Iberia since 2009 and since 2008 in Portugal. It is also the first investment in the Water sector in Iberia by a Chinese company, although it is a new sign of the commitment of Chinese investors in the region, and it is 10th investment deal in Iberia since the beginning of the crisis.
Additionally, this is the 6th M&A transaction announced by BBVA CF in 2013 YTD. Previously, BBVA Corporate Finance team has issued a Fairness Opinion to Vueling in the context of IAG's takeover bid and advised Grifols in the acquisition of Progenika Biopharma, Grifols and Progenika in the acquisition of 20% of Progenika Latam and Grupo Cementos Portland Valderrivas in the asset swap of Cementos Lemona for a 26.4% stake in Corporacion Uniland and in the disposal of Southern Cement