June 2 (Reuters) – Spanish firm FCC has agreed to sell a quarter of the share capital of its environmental subsidiary to Canadian pension fund manager CPP Investments for 965 million euros ($1.06 billion), it said. she announced on Thursday.
FCC, a construction and infrastructure company majority-owned by Mexican billionaire Carlos Slim, will retain the majority stake in FCC Servicios Medio Ambiente Holding with 75.01%, the company added.
FCC shares were up 4% at 0845 GMT.
The company said proceeds from the sale will primarily be used to fund strategic opportunities and corporate needs.
Bankinter analysts described the operation as positive, since it involves the entry of a strategic partner without losing control of the core business.
Other Spanish construction and engineering companies such as FCC, Sacyr and Ferrovial have attempted to divest part of their service subsidiaries.
Ferrovial last year sold its waste management subsidiary in Spain and Portugal to Germany’s PreZero International and reached an agreement to sell Amey Plc, its infrastructure and engineering services business in the UK, to focus on investing in waste management, highway and airport projects in North America.
Sacyr is evaluating potential buyers for its waste management and services subsidiary, Valoriza Servicios Medioambientales, valued at around 500 million euros, to accelerate the growth of its concession infrastructure activities, mainly in continental Europe, the United United, Australia and Canada.
FCC Medio Ambiente mainly operates in Spain, Portugal, United Kingdom, Central and Eastern Europe and the United States.
According to the FCC statement, the RPC Group, which manages Canada’s state pension funds, had about C$570 billion ($426.26 billion) in assets under management as of the end of March. mostly outside of Canada.
The transaction still needs to be approved by competition authorities and financial institutions.
(1 dollar = 0.9084 euros)
(1 dollar = 1.3372 Canadian dollars)
(Reporting by Matteo Allievi, additional reporting by Corina Pons, editing by David Latona and Sharon Singleton; editing in Spanish by Flora Gómez)
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