Marubeni to spend $297m to dou­ble wa­ter as­sets

The Pak Banker - - Company& -

TOKYO: Marubeni Corp., the Ja­panese owner of Chile's third-biggest wa­ter com­pany, will spend 25 bil­lion yen ($297 mil­lion) to dou­ble the size of its in­ter­na­tional wa­ter as­sets in two years.

Marubeni, based in Tokyo, plans to buy wa­ter-ser­vice com­pa­nies in South­east Asia, Aus­tralia and the Mid­dle East as well as add to as­sets in Chile and China to dou­ble the num­ber of peo­ple it sup­plies to 10 mil­lion by March 2013, said Yoji Ibuki, head of Marubeni's en­vi­ron­ment in­fra­struc­ture unit.

The com­pany this month com­pleted a 40 bil­lion yen ac­qui­si­tion of Aguas Nuevas SA of Chile and the pro­posed in­vest­ments will pro­pel the com­pany into the top 10 global wa­ter providers, Ibuki said. Ve­o­lia En­vi­ron­ment SA and Suez En­vi­ron­ment Co. of France and Spain's So­ciedad Gen­eral de Aguas de Barcelona SA, the three largest wa­ter com­pa­nies, sup­ply ser­vices to about 300 mil­lion peo­ple, ac­cord­ing to Marubeni.

"Wa­ter and in­fra­struc­ture projects are pre­ferred busi­nesses for Ja­panese trad­ing houses since the govern­ment tra­di­tion­ally helps with a large por­tion of the in­vest­ment," said Ya­suhiro Narita, a Toky­obased an­a­lyst at No­mura Se­cu­ri­ties Co. "To clinch big­ger, more at­trac­tive wa­ter deals, it's good for Marubeni to chalk up a track record."

Marubeni's shares rose 1.2 per­cent to close at 575 yen to­day on the Tokyo Stock Ex­change, the high­est since April 21, out­pac­ing a 0.2 per­cent gain in the bench­mark Nikkei 225 Stock Av­er­age. The stock has gained 13 per­cent this year in con­trast to a 2.2 per­cent de­cline in Nikkei 225.

Marubeni and its Bei­jing unit hold a 30 per­cent stake in a sewage treat­ment com­pany in An­hui prov­ince, east­ern China, which also op­er­ates units in Guang­dong, Jiangsu and Hu­nan prov­inces. Marubeni plans to ex­pand its busi­ness in South­east Asia through the Chi­nese ven­ture, Ibuki said.

Asian coun­tries the com­pany wants to in­vest in in­clude China, Thai­land, the Philip­pines and In­done­sia, Ibuki said in an in­ter­view on Dec. 10 in Tokyo.

French com­pa­nies are also ex­pand­ing in China. Suez Chief Ex­ec­u­tive Of­fi­cer JeanLouis Chaus­sade said in June his com­pany, which earns 80 per­cent of its rev­enue from Europe, would pur­sue joint ven­tures in China.

In Marubeni's lat­est deal in Chile, the trad­ing house and In­no­va­tion Net­work Cor­po­ra­tion of Ja­pan, a govern­ment-backed in­vest­ment fund, bought Aguas Nuevas from a unit of Banco San­tander SA. Acquired as­sets in­clude 33 wa­ter pu­rifi­ca­tion fa­cil­i­ties such as de­sali­na­tion plants and 39 sewage farms, Marubeni said. -Bloomberg

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.