U.S. water utilities heading for M&A rapids 11 Jul 2018 A four-way merger battle has shaken up the highly fragmented industry meeting in Minneapolis this week. California is pushing smaller utilities together, and energy firms are looking at H2O deals, too. With $4.8 trln of water infrastructure spending needed, bigger looks better.
Permian drillers tap new resource in wastewater 14 Jun 2018 U.S. shale operators extract four times more water than oil from wells in West Texas. Disposing the dirty liquid is costly and threatens growth. But some companies are treating and reusing water to cut costs. A few even could turn this into a second business in a parched world.
Water M&A mudslinging does no one any favors 7 Jun 2018 A cold war between four utilities is heating up. Frustrated California Water is launching a hostile $1.4 bln bid for local rival SJW. SJW’s preferred Connecticut partner, also in Eversource’s sights, is grudgingly seeking other offers. It may be too late to keep watchdogs happy.
Water M&A wars leave investors unusually placid 2 May 2018 The four-way fight over SJW’s bid for Connecticut Water is boiling over with accusations, intransigence, governance issues and proxy battles - none of it from shareholders. They’re either taking a surprisingly long-term view, or assuming hostile offers for utilities never work.
Water M&A fight puts governance center stage 24 Apr 2018 Eversource’s bid to upset SJW’s $750 mln deal with CWS is a close call on financial grounds. The interloper feels unfairly shut out, though, because SJW’s CEO ran the target until last year. And Eversource’s last big merger was messy. Watchdogs have to navigate choppy currents.
Tyson saves water reform from the slaughterhouse 4 Apr 2018 The largest U.S. meat producer aims to improve environmental practices on 2 mln acres of suppliers’ land, weeks after Tyson’s founding family used supervoting stock to nix a shareholder resolution along similar lines. The company has much more to do, but at least it’s listening.
The Exchange: CDP’s water boss 23 Mar 2018 Cate Lamb works with shareholders managing some $90 trln of assets to push companies to address water-scarcity and flood risks. She explains what can be done to mitigate the problem – and how doing too little costs businesses billions and can sink economic growth.
Investors can get a natural kick out of water 22 Mar 2018 Huge, costly and time-consuming infrastructure projects dominate plans for solving the world’s H2O issues. But nature-based solutions such as restoring forests and soil can yield quicker results for decent returns. They also come with sustainable-investing bragging rights.
Market tools can slake Cape Town’s water thirst 19 Mar 2018 The South African city’s taps may not run dry this year, but low rainfall, population growth and invasive flora keep the threat alive. Poor governance adds to the risk. Tradable water rights could bypass many of those problems, and set an example for other arid regions.
H2O merger an important drop in $730 bln bucket 15 Mar 2018 That’s how much U.S. water utilities may be worth. Yet a deal creating the sector’s third-largest listed company values it at just $1.9 bln. The fragmented industry needs more tie-ups to cover rising costs and investment needs. Otherwise the country’s water quality could suffer.
Suez public sector blowback makes for sorry trend 24 Jan 2018 Shares in the French water group fell 16 percent after a profit warning. Utility-like groups with long-term public contracts typically enjoy a low cost of capital. But having governments as clients is no safeguard, as Veolia and Carillion have already shown.
Private equity taps new pockets to extend water bet 3 Nov 2017 Investors led by a Rockefeller, Mellon and Harriman family LBO vehicle have made a sixfold paper profit on their 2014 buyout of Evoqua. IPO buyers won’t get near that even after a decent debut. But Evoqua’s status as a takeover target should make both sets of owners happy.
U.S.-Mexico water deal will get investment flowing 27 Sep 2017 The two countries set aside broader trade disputes in a new pact to share the Colorado River. More cooperation gives clarity to the 40 mln people who rely on the waterway. It will also help secure the billions needed for conservation, reusing water and upgrading infrastructure.
Viewsroom: Harvey’s path of financial destruction 7 Sep 2017 Texas is facing $180 bln in hurricane cleanup costs, the most of any U.S. natural disaster. The Lone Star State has the wherewithal and chutzpah to cover a large chunk, yet expects Washington to pick up most of the tab. Global water risks, meanwhile, may require $12 trln to fix.
Israeli water deal is a glass half full 7 Aug 2017 Mexichem leaked $220 mln of value on its $1.9 bln purchase of Permira- and kibbutz-backed Netafim. With global populations, drought and pollution growing, though, the drip-irrigation pioneer should fill its new owner’s coffers. India and China, especially, have yet to be tapped.
U.S. water industry trickles toward Wall Street 3 Aug 2017 On the surface, America’s H2O suppliers have much in common with banks. They’re stymied by rates, regulation and too many players, and badly need systems upgrades. That’s encouraging some dealmaking. But with $800 bln in investment needed, the industry needs to pick up the pace.
U.S. water doesn’t let Trump dampen the mood 30 Jun 2017 Industry bigwigs in New Orleans extolled an all-in approach to managing H2O, with one exception. They ignored White House plans to curtail clean-water rules to focus on fixing aging systems. Securing the needed $5 trln is urgent, but limiting federal control could be costly too.
U.S. waterworks wrestle with funding spigot 26 Jun 2017 The industry needs some $5 trln to patch up pipes, yet is getting little help from Washington. Water leaders convening in New Orleans this week have plenty of ways to woo investors. Fragmentation, cash-strapped customers and struggling utilities present significant risks, though.
Private equity bets water will wash its face 6 Jun 2017 Clayton, Dubilier & Rice is paying $2.5 bln for Waterworks, HD Supply’s pipes, sewer, storm and fire unit. It’s a wager on the need for upgrades to U.S. infrastructure – and in a sector where dealmaking is coming to a boil. That should give CDR options to engineer a clean exit.
Water investors will get used to cash calls 19 May 2017 Shares in Sao Paulo utility Sabesp plunged on news it may raise equity for post-drought projects. But its funding needs and already high leverage were no secret. With the global water sector requiring $10 trln of investment, this Brazilian capital raise won’t be the last.