EDF and Veolia Closer to Agreement on Split of Dalkia Assets

Electricite de France SA, the world’s biggest operator of nuclear reactors, and Veolia Environnement SA (VIE) said they are near an agreement to split their Dalkia energy-services company.

EDF is in advanced talks to take control of Dalkia’s French activities and Veolia would acquire the international operations, the Paris-based companies said in a joint statement yesterday. Veolia would pay 550 million euros ($758 million) to EDF to make up the difference in value between the two stakes, according to the statement.

The transaction will allow EDF, which owns 34 percent of Dalkia, a bigger anchor in its home market for energy services. Veolia will gain momentum in its plan to expand in growth markets. Dalkia gets almost half its sales in France. The company, which has 49,800 employees in 35 countries, managed revenue last year of 8.9 billion euros, according to its website.

The completed transaction would end the litigation between EDF and Veolia pending before the Paris Commercial Court, according to the companies. EDF and Veolia’s boards of directors have met and approved the continuation of the talks.

To contact the reporter on this story: Mark Chediak in San Francisco at mchediak@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.