FCC sells 25% of its environmental subsidiary to the Canadian pension fund for 965 million

2023-06-01 23:53:46

Promotion of Construction and Contracts (FCC) has closed the sale of 24.99% of its environmental subsidiary to the Canadian pension fund CPP Investments for 965 million euros, as confirmed by the company to the National Securities Market Commission. The Spanish infrastructure company will remain as a shareholder of the remaining 75.01%. The transaction values ​​FCC Medio Ambiente at 3,861 million euros.

FCC, 70% owned by the Mexican magnate Carlos Slim, will allocate the funds obtained from the divestment to “address strategic opportunities and corporate needs” from FCC. This subsidiary currently operates in Spain, Portugal, the European Union, the United Kingdom and the United States in the treatment and recycling of waste, municipal cleaning services and infrastructure maintenance. FCC Medio Ambiente provides services to more than 60 million people in 5,200 municipalities in 11 countries.

In the document sent to the regulator, FCC ensures that will continue with the business strategy that it has followed to date, maintaining its operations and commercial relations with public administrations, private clients and suppliers. In addition, he stressed that the alliance with the pension fund will allow “the strengthening and development of activities with active participation and synergies derived from the incorporation of the new partner and the permanence of the company’s management team.”

Who is CPP Investments?

CPP Investments is one of the largest pension funds in the worldmore than 570 million Canadian dollars under management. Most of its investments are carried out outside its borders in real estate assets, infrastructure, energy, debt and public and private capital funds, where it makes the capital of 21 million taxpayers in Canada profitable.

This is not the first time that the investment vehicle has invested in Spain. In 2021, entered the renewable energy sector, hand in hand with Benbros Solar, to purchase and develop 14 photovoltaic projects in Andalusia, Extremadura, Castilla-La Mancha, Aragon and Murcia. In the last year, it probed its entry into the Spanish residential market. CPPI negotiated with the developer Neinor Homes to buy a portfolio of 1,000 rental homes for 400 million, although the operation did not come to fruition due to the rise in interest rates and the cost of financing.