BlackRock-backed Suez taps HSBC to review China assets
A transaction could value the China water business at more than US$1 billion, sources say
French utility group Suez is reviewing its Chinese water-infrastructure assets, people familiar with the matter said, as the company looks at potential ways to streamline its global operations.
The BlackRock-backed company is working with HSBC Holdings to study options for the business, the people said, asking not to be identified because the deliberations are private. It has approached a select group of potential buyers to gauge their interest, according to the people.
A transaction could value the China water business at more than US$1 billion, some of the people said. Suez will soon ask for non-binding bids for the assets, which could attract Chinese firms and infrastructure funds, the people said.
Considerations are very preliminary and may not lead to a deal, they said. Suez could decide to keep the assets depending on the offers it receives, the people said.
A spokeswoman for Suez said the company is making a market assessment of its operations, though it has no plan to sell its Chinese assets. A representative for HSBC declined to comment. L’Informé reported in February that Suez was debating the future strategy for some of its overseas operations, including whether to divest some Chinese assets.
Suez entered China’s water market in 1975 as one of the first international companies investing in the country’s environmental industry, according to its website. It has had a presence in Southeast Asia since 1953 with operations in Singapore, the Philippines, Vietnam and Indonesia, among others.