Aqualia interested in French market, but not in Saur

Despite a formal denial of local press reports suggesting that it was about to effect a takeover of France’s third-largest private water operator Saur, FCC Aqualia has confirmed that it is interested in breaking into the French municipal water market.

The Spanish company is currently bidding for a 12-year water and wastewater concession in Arles (Provence) currently held by Eaux de Marseille, and has acknowledged that it is studying opportunities in three other southern French municipalities: Béziers, Arcachon and Sète.

M&A consultant Richard Onsés, who knows the French and Spanish markets well, told GWI: “I believe FCC’s denial, because Saur’s structure is unattractive, with lots of small contracts without any geographical coherence.” Acquiring Saur “would cost a lot of money, and there are cheaper ways to get into the French market,” he said.

The question of how long Saur’s creditor banks-turned-shareholders will look to retain their equity positions remains unanswered.