|
Suez pays $425m for Calgon
|
 |
June 15, 1999: 9:50 a.m. ET
French utility buys world's no. 3 water treatment company from Imetal
|
LONDON (CNNfn) - French utility Suez Lyonnaise des Eaux has paid $425 million for U.S. water treatment group Calgon as part of its strategy to secure a foothold in the world's largest water market.
The deal comes only a day after a consortium led by the French group won the race to take a large minority stake in the Chilean state-owned water company that serves the capital Santiago.
Suez bought Calgon, which it claims is the world's no. 3 water treatment company, from French metals group Imetal. "This gives us a direct and effective entry in the U.S. market in keeping with out expansion goals in this country," Suez chairman, Gérard Mestrallet, said in a statement.
Calgon has sales of around $284 million, with 86 percent generated in the United States. The company will be merged with Suez's Degrémont subsidiary, which has most of its business in Europe.
In a separate move, Suez was selected by the Chilean government Monday to take a 42 percent stake in Emos, Santiago's municipal-owned water company, which supplies the city's 5 million inhabitants.
Suez, together with its Spanish partner Agbar, will pay $957 million for the stake. Suez already runs five other South American water companies for some of the region's largest cities, including Buenos Aires, Argentina and La Paz - El Alto, Bolivia.
|
|
|
|
|
 |
|
