French energy firm EDF and water and waste company Veolia Environnement are about to conclude a deal to split Dalkia, their jointly owned energy services firm.
EDF (Euronext: EDF) will acquire Dalkia’s French business, while Veolia will acquire Dalkia International, which develops biomass and combined heat and power projects worldwide.
Veolia Environnement currently owns 66% of Dalkia, while EDF owns the rest. The deal will include a cash payment to EDF of €550 million (US$759 million) to make up the difference in value between the two companies’ stakes.
Dalkia’s revenues for 2012 amounted to €3.8 billion from its French business and €3.7 billion from its international business.
The deal will also end a court case pending before the Commercial Court in Paris, in which EDF sued Veolia in October 2012 for failure to implement a previously agreed 50-50 split in ownership.