French waste and water management company Veolia is selling its entire stake in the Casablanca-based utility firm Lydec to Société Régionale Multiservices Casablanca-Settat, according to a statement (pdf) released on Friday. Veolia acquired Morocco’s Lydec in its EUR 13 bn merger with French water and waste management company Suez in 2022. The sale is expected to close by the end of the year pending regulatory approvals.

Behind the decision: Veolia was fined USD 10 m by Morocco’s Competition Council back in January after the council accused the firm of monopolizing water and electricity services in major cities including Casablanca, Rabat, and Tangier, Morocco World News reported earlier this year. Utility firms including Lydec, Redal, and Amendis were accused of facilitating Veolia’s move which broke the country’s competition laws. Veolia’s merger with Suez was contingent on the divestment of certain assets including Lydec, for which Veolia was given a month to find a buyer for.

About Lydec: Founded in 1995 as part of Suez, the company manages water and electricity distribution, wastewater and rainwater collection in Casablanca, Morocco, according to their website.

Veolia has other projects in Morocco: The firm is also working with French automaker Renault, which started producing EVs at its Tangier plant in 2023, to create the world’s first car manufacturing plant with zero carbon emissions and zero industrial liquid discharge in Morocco.

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