Mota-Engil has completed the spin-off of Urbaser in the waste sector in Portugal

Mota-Engil has completed the spin-off of Urbaser in the waste sector in Portugal

For the company, “the completion of the acquisition, announced today, will allow it to accelerate the implementation of its strategic plan, namely the internationalization of its environmental business.”

Mota-Engil completed the sale of its share in the industrial waste business in Portugal to the Spanish company Urbaser and, at the same time, the purchase of the stake in Suma – Serviços Urbanos e Meio Ambiente, which was owned by this Spanish company.

The agreement provides for the dissolution of the joint venture, which dates back to 1995. Thus, Mota-Engil acquires 38.5% of Urbaser and takes over the entire urban waste collection and treatment business in Soma. Conversely, Urbaser will retain 61.5% of this company's industrial waste space and will do so with 100% of the new company created from scratch (Industrial Waste NewCo).

The company says in a statement that “regulatory licenses have been obtained and the necessary preconditions have been met to complete the deal with Urbaser announced and detailed in March 2023.”

“Thus, within the scope of a business development strategy focused on the Group's core business, which includes the environment, Mota-Engil now owns 100% of Suma, in addition to the shares it retains in its Group vehicles and 'urban services, waste treatment and recovery sectors,' And the international subsidiaries in Angola, Brazil, Mozambique and Oman, in return, sell to this historical partner their subsidiaries in the industrial sector, which will therefore be wholly owned by Urbaser,” says Mota Engel Group.

For the Portuguese company, “the completion of the acquisition announced today will allow it to accelerate the implementation of its strategic plan, which is to internationalize its environmental business, supported by its extensive knowledge and international presence, and to maintain its firm commitment to the development and technological modernization of the environmental sector in Portugal and in the international markets in which it operates.”

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Mota-Engil bought the 38.5% equity stake in Suma, which has been held by its partner until now. The agreement stipulates that Urbaser will assume control of industrial waste processing by purchasing the 61.5% stake held by Mota-Engil in this sector of activity.

In March last year, the Competition Authority was notified of the merger, which would see Urbaser “acquire exclusive control of a vehicle company to be formed which will take over Soma’s industrial waste business unit (Industrial Waste NewCo), by acquiring a majority stake in its capital.” From Mota-Engil, Ambiente e Servicos.” The vehicle company now owns the industrial waste business unit in Soma and will integrate several companies operating in the field of collection and treatment of hazardous and non-hazardous industrial waste on the market, in addition to the collection, transportation and treatment of used oils.

By Andrea Hargraves

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