French Veolia to divest its stake in Morocco’s Lydec

French Veolia plans to sell its stake in utilities company Lydec, a Casablanca-listed company that manages water supply, electricity distribution, and sewage.

Veolia will sell its stakes to Société Régionale Multiservices Casablanca-Settat, in line with authorities’ plan to put utilities under the authority of regional companies owned by the state.

Lydec oversees the delegated management of public services for the distribution of drinking water, electricity, wastewater and public lighting for the city of Casablanca and its region.

The transaction is expected to close by the end of 2024, once all the necessary administrative approvals have been obtained, the company said in a statement.

Divestment from Lydec has no impact on Veolia’s 2024 financial guidance or on the objectives of Veolia’s GreenUp strategic plan, it said.

Moroccan authorities plan to not renew deals with other utilities in big cities, as regional state-owned companies will take over.