Macquarie Group Mulls China Water Treatment Asset Sales

(Bloomberg) -- Macquarie Infrastructure and Real Assets Inc. is weighing a sale of Chinese water treatment assets that could fetch as much as $800 million, people with knowledge of the matter said.

The unit of Australia’s Macquarie Group is working with advisers on the potential divestments, the people said. The firm will be asking for bid proposals in the coming weeks, said the people, who asked not to be identified because the information is private.

China’s market for wastewater treatment is expanding amid a government-led effort to combat the rampant pollution that followed decades of explosive industrial growth. It’s estimated to total $58.2 billion in 2022, up from $42.1 billion in 2017, according to U.S.-based BCC Research.

MIRA’s portfolio includes investments in four water-treatment firms in China’s northeastern Liaoning province, three in the capital of Shenyang, one in port city of Dalian, its website shows.

Deliberations about a possible sale are at an early stage, and MIRA could still decide against a deal, the people said. A representative for MIRA declined to comment.

MIRA manages about $129 billion of assets over 70 funds and partnerships as of Sept. 30, according to the website.

To contact the reporter on this story: Vinicy Chan in Hong Kong at vchan91@bloomberg.net

To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, Timothy Sifert

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