Veolia Environnement SA, which sold a U.K. unit to a Morgan Stanley-backed venture yesterday to cut debt, may dispose of its U.S. waste unit next, Bank of America Corp. said in a note.
“Veolia’s U.K. water sale was widely expected,” Bank of America’s Merrill Lynch unit research analyst Pinaki Das said in a note today. “The remaining 3.5 billion euros ($4.4 billion) of planned disposals include Transdev, U.S. waste and other smaller assets.”
Transdev is a mass-transit unit the company co-owns while the U.S. unit is Milwaukee-based Veolia ES Solid Waste Inc. “The 25 percent Berlinwasser stake could also be sold,” the note said. “A U.S. waste disposal is probably next in line.”
Veolia sold the U.K. unit to Infracapital Partners for about 1.2 billion pounds ($1.9 billion) as Chief Executive Officer Antoine Frerot cuts the Paris-based waste and water utility’s debt.