Veolia Transport and Transdev move closer to merger

The new company – provisionally called Veolia-Transdev – would become one of the world leaders in passenger transportation and plans to attract new investors via a public listing.

French state-backed bank Caisse des Dépôts (CDC) and Veolia Environnement have signed a framework agreement which brings them one step closer to merging their respective transport subsidiaries – Transdev and Veolia Transport.
 
The resulting company – provisionally named Veolia-Transdev – would become one of the world leaders in passenger transportation with about €8 billion in revenues and 120,000 employees. CDC and Veolia Environnement would be equal partners in the new company, with Veolia Environnement acting as the industrial operator and CDC acting as long-term strategic shareholder. Once market conditions improve, the shareholders plan to list the new company through a capital increase.
 
Prior to the merger, CDC will subscribe to a €200 million capital increase in Transdev. The framework agreement also outlines an exit strategy for French transport firm RATP, which holds a 25.6 percent stake in Transdev. Under the agreement, RATP plans to exchange its stake for certain French and international assets of Veolia Transport and Transdev equal to the stake’s value.
 
Veolia Transport operates in 28 countries around the world with a strong presence in the US, Europe, China, India and Australia. It recorded revenues of close to €3 billion in the first half of 2009. Transdev is also a global player operating in several European countries, Australia and Canada. The company posted €1.2 billion in revenues for the first half of 2009.