Veolia Voda Buys 58% Stake in Bulgaria's Sofiyska Voda

France's Veolia Environnement, the world's biggest listed water company, has signed an agreement for the acquisition of several European water supply and treatment businesses from United Utilities, including Bulgaria's Sofijska Voda.

The price of the deal is some EUR 199 M.

The French utility will take a 58% stake in Sofiyska Voda, the company operating water supply and treatment services for the city of Sofia in Bulgaria, which serves 1.3 million inhabitants.

It will also buy 26% of Tallinn-based AS Tallinna Vesi and a third of Aqua SA, which provides water for the Polish city of Bielsko Biala.

Veolia will also take over a number of outsourcing, industrial engineering and infrastructure contracts in the UK to boost its position in the country's non-regulated water sector, as well as taking stakes in Scottish waste treatment contracts.

"These targeted acquisitions fit perfectly with Veolia Environnement's strategy of asset rotation, focusing on companies with significant organic growth potential, that leverage the company's competitive advantages and with a payback period consistent with its targets," Veolia said.

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