FCC sells 25% of its environmental subsidiary for nearly €1 billion

Construction 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 ($1,060 million), according to The Guardian. the company reported this Thursday. The company, which is majority owned by Mexican billionaire Carlos Slim, will retain a majority stake in FCC Servicios Medio Ambiente Holding of 75.01%.

The company said that proceeds from the sale will be used primarily to fund strategic opportunities and company needs. Bankinter analysts described the process as positive, as it involves the entry of a strategic partner without losing control of the core business.

Closing of the transaction is subject to the usual prior conditions such as competition or permission from financial institutions.

FCC Medio Ambiente and its subsidiaries carry out, both nationally and internationally, numerous environmental service activities through four main platforms such as Spain, Portugal, United Kingdom, United States and EEC (European Economic Commission).

For its part, CPP Investments is a global management group with 21 million Canada Pension Plan shareholders and beneficiaries. With assets under management of $570,000 million as of March 31, 2023, of which $487,000 million is located outside Canada, in very diverse sectors of activity, such as real estate, infrastructure, energy, debt, and public and private equity funds.

Like other builders

In addition to the FCC, other Spanish construction and engineering companies such as Sacyr or Ferrovial have tried to liquidate part of their service companies.

Ferrovial sold its waste management subsidiary in Spain and Portugal to Germany’s PreZero International last year and reached an agreement to sell Amey Plc, its UK-based infrastructure and engineering services business, to focus on investing in waste, highway and airport projects in North America.

Sacyr is evaluating potential buyers for its waste management and services subsidiary, Valoriza Servicios Medioambientales, valued at approximately €500 million, to accelerate growth in its franchise infrastructure business, particularly in continental Europe, the United Kingdom, Australia and Canada.