FCC sells 25% of its Environmental Services subsidiary to CPP for 965 million

Promotion of Constructions and Contracts (FCC) has announced a sales agreement with the Canadian investment group CPP Investments for the transfer of 24.99% of its subsidiary dedicated to the Environmental Services business (FCC Servicios Medio Ambiente Holding, SAU) in exchange for 965 million euros.

As reported by the company to the National Securities Market Commission, FCC will maintain the majority shareholding of its subsidiary, by keeping 75.01% of its capital. The funds obtained from the operation will be used to “attend the group’s strategic opportunities and corporate needs.” This figure would place the total value of the subsidiary around 3,860 million euros.

FCC Medio Ambiente and its subsidiaries, both national and international, dedicate their activity to the provision of municipal services —collection of waste, street cleaning, conservation of green areas, sewage maintenance or beach cleaning—, to the tasks of recycling and solid waste treatment urban, and known as ‘facility management‘, which includes cleaning and maintenance of buildings, urban furniture or energy management.

The company that is the object of the operation has divided its business into four geographies: Spain and Portugal, the United Kingdom, Europe and the United States. The closing of the operation is subject to both the competition agencies and the financial entities give permission to it.

Meanwhile, FCC Medio Ambiente will continue with its current strategy, will maintain its operations and the management team of the company; and expects to strengthen and develop new activities “with the active participation and synergies derived from the incorporation of the new partner.”

CPP Investments is the company that manages the funds of the 21 million contributors and beneficiaries of the Canada Pension Plan. It manages more than 570,000 million Canadian dollars (394,000 million euros) in assets, according to data as of March 31, 2023; of which $487 billion ($337 billion) are located outside of Canada in various sectors: real estate, infrastructure, energy, debt or public and private equity funds.

Source: LA INFORMACIÓN – Lo último by www.lainformacion.com.

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