While the news of the sale of its Eaux de Marseille-Maroc (EMM) subsidiary to the Lebanese company Butec is still fresh, Veolia is selling off another of its subsidiaries. This is Société auxiliaire des distributions d'eau (SADE)-CGTH, which designed, built, rehabilitated and maintained water networks for the French group. It joins the NGE public works group, which operates in several African countries.
Nouvelles générations d’entrepreneurs (NGE) is set to expand its offering in the water sector, particularly in sub-Saharan Africa, where the French group is active in several countries, including Cameroon, Gabon, Ivory Coast, Congo, Togo, Nigeria and Guinea. The construction and public works (BTP) specialist took over the activities of its compatriot, Société auxiliaire des distributions d’eau (Sade)-CGTH, on 29 February 2024.
“At a time when environmental issues, in particular the preservation of water resources and the rehabilitation of networks, are becoming increasingly pressing, the integration of Sade-CGTH offers us an opportunity to position ourselves as a key player in helping public and private players to meet the challenges of the ecological transition”, says NGE.
Sade-CGTH, which specialises in the design, construction, rehabilitation and maintenance of networks (water and energy) and infrastructures (civil engineering and underground works), was acquired from the French group Véolia, which founded it in 1918, for €260 million. The former Véolia subsidiary had annual sales of around €1.1 billion by 2022.
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“From now on, we will be present in 17 countries, with more than 200 sites in France,” reads the NGE press release published on 4 March 2024 and consulted by AFRIK 21.
Reasons for the sale
Another piece of good news is that all of SADE’s workforce will be retained, i.e. 6,900 employees, who will join NGE’s 16,000-strong workforce. But what justifies this transaction?
In a press release published on Véolia’s website on 4 March 2024, Estelle Brachlianoff, the Group’s CEO, explains that construction activities are no longer part of their core business, before adding that Véolia chose to focus on service businesses a few years ago. In November 2023, she announced the environmental giant’s ambition to strengthen its capacity to invest in its strategic activities.
These reasons put forward by Estelle Brachlianoff may also justify the sale of Eaux de Marseille-Maroc (EMM), Veolia’s former subsidiary in Morocco, to the Lebanese company Butec in January 2024. Active in the Cherifian kingdom for some twenty years, the company previously managed water and wastewater installations, as well as leakage prevention networks for Véolia, a vital activity in a context of water stress.
Inès Magoum
