Veolia’s stake sale in Lydec gets the green light: The Moroccan government has approved Société Régionale Multiservices Casablanca-Settat’s (SRM) full acquisition of Casablanca-based utility firm Lydec from French waste and water management company Veolia, Morocco World News reported last week citing the country's Official Bulletin (pdf). The financial closure of the acquisition is expected by the end of 2024, pending all necessary administrative approvals. The government holds a 25% stake in SRM.

The details: SRM will assume responsibility for the delegated management of water, electricity, and liquid sanitation services in Casablanca and its outskirts. The firm acquired all of Lydec’s shares, including those held by Veolia through its subsidiaries Vigie Groupe and Vigie 50. Veolia stated that this anticipated divestment will not impact the group’s financial forecasts and objectives.

ICYMI- 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. 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 had acquired Morocco’s Lydec in its EUR 13 bn merger with French water and waste management company Suez in 2022. The firm reports a turnover of around EUR 700 mn, the news outlet wrote.

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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