Spain’s FCC Construcción has announced it will sell a further 25% of its environmental arm to Canadian state private-equity company CPP Investments for €1bn.
FCC will continue to hold a 50.01% majority interest in FCC Enviro, with CPP Investments’ stake rising from 25% to 49.99%.
FCC said the deal would help it meet “strategic opportunities and the corporate needs”.
FCC Enviro expects to continue with its current management team, strategy, operations and commercial relationships.
James Bryce, CPP Investments’ head of infrastructure, said: “Increasing our stake in FCC Enviro deepens our commitment to a proven platform that plays a unique role in advancing the global circular economy. FCC Enviro’s differentiated scale and proven track record provide a compelling foundation for continued growth.
“This transaction is aligned with our strategy to invest behind key thematic trends, such as the circular economy, to generate attractive risk-adjusted returns for the CPP’s 22 million contributors and beneficiaries in Canada.”
The transaction is still subject to competition and foreign investment conditions.
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