The acquisition will further boost Sembcorp’s waste management and recycling business as a major integrated environmental services provider in Singapore
Singapore-based Sembcorp, through its wholly-owned subsidiary SembWaste, has agreed to acquire Veolia ES Singapore (VESS) and the public cleaning business of Veolia ES Singapore Industrial (VESSI) for nearly S$28m ($20.73m).
According to Sembcorp, the businesses to be purchased have contracts for public and commercial waste and recyclable collections covering recovery and recycling, public and commercial cleaning services, in addition to associated properties which include a materials recovery facility.
The deal is in line with Sembcorp’s strategy to strengthen its presence as an integrated energy and urban solutions player
The acquisition is aligned with the company’s strategy of increasing its presence as an integrated energy and urban solutions player, offering green and more efficient solutions to allow sustainable development in its crucial markets.
The deal will further boost Sembcorp’s waste management and recycling business as a premier integrated environmental services provider in Singapore. The company said that it is committed to supporting the country’s move towards a circular economy and a zero waste nation.
The acquisition will also assist in Sembcorp’s strategy of supporting sustainable development with its integrated solutions by joining the dots along the entire waste management value chain from waste collection and public cleaning to materials recovery and turning waste into energy.
Sembcorp Industries senior vice president (Waste Management) Neo Hong Keat said: “Sustainability needs scale in the environmental business. For instance, after the acquisition, SembWaste’s fleet of vehicles would have doubled to close to 400.
“Such scale will enable the business to invest in a more efficient trucking fleet using cleaner fuels.
“In addition, we would also be better placed to move towards automation as well as skills upgrading for a fast-changing industry that is critical to the sustainability ecosystem in Singapore.”
The deal is subject to regulatory approval and is not expected to have a significant impact on the earnings per share and net asset value per share of Sembcorp for the financial year ending 31 December 2020.
In November 2019, Veolia, through its subsidiary Veolia Water Technologies Canada, had been chosen by Pretium Resources to supply the new effluent treatment facility for the Brucejack gold mine in British Columbia, Canada.
Veolia will supply proven proprietary processes to treat up to 10,000 m3 per day of effluent water from the mine.