Italgas aims to strengthen itself in the water sector. The Italian utility has entered into exclusive negotiations with Veolia for the potential acquisition of the shares held by the French water and waste group in some companies active in the water service in the regions Lazio, Campania e Sicilia. The operation "is part of the broader strategy outlined in the 2022-2028 Strategic Plan which provides for the strengthening of the Group's presence in the water sector", reads the group's note.
And the title of the Italian utility celebrates on the Stock Exchange Milano with a +1,32% to 5,37. While, a Paris Veolia with a +0,15% to 26,88 euros.
Italgas-Veolia: exclusive period until 10 May
As part of the ongoing negotiations, the Veolia Group granted Italgas a exclusivity period until May 10, 2023, for the completion of the due diligence activities. In particular, the transaction concerns the potential purchase of the Veolia Group's equity investments in the following companies:
- 100% of the share capital of Water which in turn directly holds 98,5% of the share capital of Hydrosicilia and indirectly, 75% of the share capital of Sicily waters (concessionaire of the collection, accumulation, purification and adduction service in the Sicily Region with approximately 2.000 km of adduction network. The service covers over 30% of the regional population);
- 100% of Hydrolatin which in turn holds about 49% of Acqualatina (manager of the integrated water service in ATO 4-Southern Lazio which includes 38 Municipalities for a catchment area of 550.000 inhabitants);
- 47,9% of Campania water: the manager of the Western Campania Aqueduct under concession from the Campania Region. It carries out the collection, purification, supply and transport of drinking water destined for water distribution companies for a total catchment area of approximately 4 million inhabitants.
The companies Acqua, Idrosicilia and Idrolatina are holding companies while Siciliacque, Acqualatina and Acqua Campania are operational in nature.
Veolia's 2022 results
Optimized resource management is one of the most important challenges of our time. For this reason the exclusive negotiation has a strategic importance. The French multinational designs and supplies water, waste and energy management solutions that contribute to the sustainable development of communities and industries. And it is a group that continues to grow, as the numbers testify. Veolia closed 2022 with "all-time high" results after absorbing most of the assets of its French rival Suez. An operation worth 13 billion euros which translates into a net profit up 30%, for the first time exceeding one billion euros (at 1,162 billion) driven by orders and the savings programme. The French group saw its turnover grow by almost 50% to 42,9 billion euros (at constant exchange rates), a leap due two-thirds to the acquisition of Suez and one-third to its organic growth. At constant scope and exchange rates, the increase was 14,1%.
