BlackRock-backed Suez taps HSBC to review China assets
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The BlackRock-backed company is working with HSBC Holdings to study options for the business, the people said, asking not to be identified because the deliberations are private. It has approached a select group of potential buyers to gauge their interest, according to the people.
A transaction could value the China water business at more than US$1 billion, some of the people said. Suez will soon ask for non-binding bids for the assets, which could attract Chinese firms and infrastructure funds, the people said.
Considerations are very preliminary and may not lead to a deal, they said. Suez could decide to keep the assets depending on the offers it receives, the people said.
A spokeswoman for Suez said the company is making a market assessment of its operations, though it has no plan to sell its Chinese assets. A representative for HSBC declined to comment. L'Informé reported in February that Suez was debating the future strategy for some of its overseas operations, including whether to divest some Chinese assets.
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Suez entered China's water market in 1975 as one of the first international companies investing in the country's environmental industry, according to its website. It has had a presence in Southeast Asia since 1953 with operations in Singapore, the Philippines, Vietnam and Indonesia, among others.
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