Moroccan Government Approves SRM Casablanca-Settat’s Full Acquisition of Lydec

Thursday 08 August 2024 - 15:45

In a highly anticipated move, the Moroccan government has officially authorized the Société Régionale Multiservices (SRM) Casablanca-Settat to acquire 100% of Veolia’s shares in the utility company Lydec S.A. This significant development was formalized through Decree 2.24.737, signed by Minister of Economy and Finance Nadia Fettah Alaoui and published in the latest edition of the Official Bulletin.

The authorization follows Veolia’s announcement approximately one month ago of its intention to sell its entire stake in Lydec, which it had acquired during the takeover of Suez in 2022, to SRM Casablanca-Settat. This strategic acquisition will see the regional company take charge of the delegated management of water, electricity, and liquid sanitation services in Casablanca and its periphery. This decision was endorsed by the Council of the Casablanca-Settat Territorial Collectivities Group for Distribution during its extraordinary session on July 3.

According to the text of Decree 2.24.737, SRM Casablanca-Settat has acquired all of Lydec’s shares, including those held by Veolia Environnement through its subsidiaries Vigie Groupe S.A.S and Vigie 50 S.A.S. This decree facilitates the transfer of Lydec’s ownership to the Moroccan state, in line with Article 8 of Law 39.89, which authorizes the transfer of public establishments to the private sector while emphasizing the importance of service continuity under optimal conditions.

The SRM’s board of directors, which convened on July 3, approved the acquisition of 100% of Lydec’s capital. The financial closing of the operation is expected to take place by the end of 2024, following the procurement of all necessary administrative approvals.

Veolia has stated that this anticipated divestment will not impact the group’s financial forecasts and objectives. Despite the sale, Veolia will remain a major partner of Morocco, particularly in the water and electricity distribution activities through its contracts in Rabat, Tangier, and Tetouan.

Lydec, which reports a turnover of around €700 million, has been managing the water, electricity, sanitation, and public lighting services of Casablanca and its region, serving approximately 5 million inhabitants, since 1997. With the state holding a 25% stake in SRM Casablanca-Settat, the regional company will now assume responsibility for managing these services throughout the region.

This acquisition marks a significant milestone in the strategic reorganization of utility services in Morocco, ensuring continuity and efficiency in the provision of essential services to the population.