U.S. Water News Online
FRANKFURT, Germany -- German utility conglomerate RWE AG has said it will sell its U.S. and British-based water operations to sharpen its focus on European gas and electricity markets.
The company said it hopes to complete the sale of RWE Thames Water in Britain and American Water Works Co. by 2007.
The company said in a statement it plans to sell off Vorhees, N.J.-based American Water first, either through an initial public offering or selling it to financial investors. Once that has started, it will start searching for buyers for Reading-based RWE Thames Water, the world's third-biggest provider of water and wastewater services.
American Water operates utilities in 20 states, including West Virginia. West Virginia-American Water is the state's largest water utility, serving about 25 percent of the state's 1.8 million residents.
Any deal will require approval from RWE's supervisory board as well as regulators.
"The transactions will lead to greater transparency of the value of our water business. Both American Water and RWE Thames Water are market leaders in their respective regions," said Chief Executive Harry Reols. "As stand-alone entities, they are well positioned to continue on their stable growth paths going forward and maintain the breadth and quality of their service."
Combined, they accounted for 4.1 billion euros, or 9.6 percent, of RWE's overall 2004 sales of 46.8 billion euros ($55.9 billion).
Return to the U.S. Water News' past archives page Or Return to the U.S. Water News Homepage
Editor@uswaternews.com
*Your Name:
*Your Email:
*Friend's Email:
Use a comma to separate e-mail addresses:
*Your Comments:
Hi, I thought you might like to read this article.
*Required Fields