Spain's FCC sells 25% of its environmental subsidiary for $1 billion

FCC Medio Ambiente operates mainly in Spain, Portugal, Britain, Central and Eastern Europe and the United States. According to FCC's statement, CPP, which manages Canada's state pension funds - had around 570 billion Canadian dollars ($426.26 billion) in assets under management at the end of March, with most of outside of Canada.

Spain's FCC has agreed to sell a quarter of its environmental subsidiary's share capital to Canadian global management group CPP Investments for 965 million euros ($1.06 billion), it said on Thursday.

FCC, a building and infrastructure company majority-owned by Mexican billionaire Carlos Slim, will retain the majority of FCC Servicios Medio Ambiente Holding with a 75.01% stake, the company added. Shares in FCC were up 4% at 0845 GMT.

The company said proceeds from the sale will be used primarily to fund strategic opportunities and corporate needs. Bankinter analysts said the operation was positive, as it meant bringing in a strategic partner without losing control of the main business.

Spanish construction and engineering firms such as FCC, Sacyr and Ferrovial have been seeking to divest part of their service units. Ferrovial sold its waste management unit in Spain and Portugal to German firm PreZero International last year and reached an agreement to sell Amey Plc, its infrastructure services and engineering business in Britain, to focus on investing in highway and airport projects in North America.

Sacyr is evaluating potential buyers for its service and waste management unit, Valoriza Servicios Medioambientales, valued at around 500 million euros, to speed up growth in its concession infrastructure businesses, mainly in continental Europe, Britain, Australia and Canada. FCC Medio Ambiente operates mainly in Spain, Portugal, Britain, Central and Eastern Europe and the United States.

According to FCC's statement, CPP, which manages Canada's state pension funds - had around 570 billion Canadian dollars ($426.26 billion) in assets under management at the end of March, with most of outside of Canada. The transaction has yet to be approved by competition authorities and financial institutions.

($1 = 0.9084 euros) ($1 = 1.3372 Canadian dollars)

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