The group has retained its Veolia Water Outsourcing business which is a leading provider of outsourced services to the UK water industry.
Olivier Bret, Veolia Water Chief Executive Officer, said of the sale:
"The sale will reduce the capital intensity of the group and in doing so create a platform that will allow the company to wholly focus on its commercial outsourcing business and continue to provide a valued service to our clients and partners.
"The UK water sector is a strategically important market for Veolia Environnement and the group is committed to continuing the growth of Veolia Water and the Veolia Water Solutions & Technologies division in the UK.
"Selling the majority stake in our regulated water assets will bring Veolia Water UK in line with the Veolia Environnement operating model and enable multi-divisional environmental service offerings combining our group expertise in water, waste and energy. This will allow us to achieve our key ambitions for continued growth and service provision in the outsourcing arena."
Antoine Frerot, Chairman and Chief Executive Officer of Veolia Environnement, added:
"This first significant divestment shows that we are moving in the right direction regarding the implementation of our strategic plan and that the transformation of Veolia is progressing at a good pace."
As part of the sale, Veolia Water has retained a 10 per cent shareholding and has established an exchange agreement to ensure sharing of best practices and continued access to previously developed capabilities.
Notes to Editors:
For further information, please contact the Veolia Water communications team on +44 (0)207 843 8506 or visit our website www.veoliawater.co.uk.
Veolia Water provides water and wastewater management services throughout the UK and Ireland and is part of the world's leading water company. Veolia Water specialises in delivering integrated sustainable solutions that range from drinking water supply management and wastewater treatment to bespoke design solutions for business and industry.
Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is the worldwide reference in environmental solutions. With more than 315,000 employees, the company has operations all around the world and provides tailored solutions to meet the needs of municipal and industrial customers in four complementary segments: water management, waste management, energy management and passenger transportation. Veolia Environnement recorded revenue of $46.5 billion in 2010.www.veolia.com
(a) Rift Acquisitions Limited is an acquisition entity formed by Infracapital Partners, the infrastructure investment fund managed by M&G (the European investment arm of Prudential plc) and Morgan Stanley Infrastructure Partners.
(b) On a regulated asset base of £948m at March 31, 2012
Veolia Water Outsourcing:
More than 1,000 people work for Veolia Water Outsourcing and associated JVs in the UK and Ireland.
The turnover of the combined business interests, including associated JVs, is more than 400m per year.
90% of turnover is achieved through long-term operating contracts.
Operating at more than 100 locations throughout the UK and Ireland.
Services include management and delivery of asset operationsand bespoke design and build.
Future growth focus:
Innovative sludge management, extracting value from waste, re-use and recovery - including energy generation.
Capital delivery operating knowledge and programme expertise.
Developing smart networks, incorporating automatic meter reading and systems for collecting data and managing networks efficiently and effectively Unique Advantage.
Key markets are municipal and commercial.Clients include water and wastewater companies, defence establishments and airports. Compliments sister company Veolia Water Solutions & Technologies in the delivery of bespoke technologies and services to industrial clients.