Veolia Seeks Over $1 Billion in District Energy Sale

(Bloomberg) -- French water and waste-treatment company Veolia Environnement SA is seeking more than $1 billion for its North American heating and cooling business in first-round bids due next month, people familiar with the matter said.

A portfolio that includes the firm’s District Energy Networks business is expected to draw interest from bidders including Brookfield Asset Management Inc.’s Enwave Energy Corp., said the people, who asked not to be identified because the process is private. Veolia may also gauge interest from companies such as Engie SA, Algonquin Power & Utilities Corp. and Epcor Utilities Inc., two of the people said.

Veolia North America examining its heating and cooling networks as part of the group’s portfolio review, and Veolia’s strategic plan will be presented early next year, a spokeswoman for the French company said. Conclusions shouldn’t be drawn about its future, she said.

Aubervilliers-based Veolia said in February that it’s deciding whether to keep the business -- which provides thermal energy and cooling for buildings -- as part of its regular portfolio review. In recent years, the French utility has been tapping manufacturer demand for water and hazardous-waste treatment as well as plastics recycling where it sees faster growth than in services to municipalities.

Representatives for Brookfield, Engie and Algonquin declined to comment. Epcor didn’t immediately respond to a request for comment.

--With assistance from Brian Eckhouse and Dinesh Nair.

To contact the reporters on this story: Gillian Tan in New York at gtan129@bloomberg.net;Francois de Beaupuy in Paris at fdebeaupuy@bloomberg.net;Scott Deveau in New York at sdeveau2@bloomberg.net

To contact the editors responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net, ;Elizabeth Fournier at efournier5@bloomberg.net, Amy Thomson, Michael Hytha

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