Emefcy has entered into a letter of intent (LOI) to merge with RWL Water, a provider of water treatment, wastewater treatment and waste-to-energy solutions.

Emefcy is engaged in the development, manufacturing and marketing of MABR based wastewater treatment solutions.

If consummated, the proposed business combination will create a global water solutions company. The proposed name of the new global group, subject to shareholders’ approval, would be Fluence.

Fluence will offer a range of products and services for water treatment, wastewater treatment, desalination, waste-to-energy and water reuse and recovery.

It will supply products to various markets, including municipal, commercial, industrial, mining, oil and gas, power, food and beverage sectors.

The combined firm will focus on expanding operations in China and other key markets.

With anticipated sales of around $90m in this year, the companies combined revenues were $62m in 2016.

The deal is subject to agreement on definitive terms and execution of a purchase agreement, as well as Emefcy shareholder approval and other customary conditions

Emefcy Group executive chairman Richard Irving said: “Subject to completion, we expect this merger to create a clear leader in the global distributed water and wastewater treatment industry, one of the fastest growing sectors of the water market globally.

“Emefcy has developed breakthrough technology to substantially reduce the cost of wastewater treatment, but has not yet fully developed its distribution and turn key plant implementation capability.”

RWL Water CEO Henry Charrabé said: “We believe that should we complete this merger, Fluence would be well positioned as a global leader in the vast market for distributed and packaged total water treatment solutions.”