Spaniard FCC has agreed to sell a quarter of the share capital of its environmental subsidiary to the manager of Pension fund Canadian CPP investment of 965 million euros, approximately 1.60 million dollars.

FCC, a construction and infrastructure company majority owned by Mexican billionaires Carlos Slim, will retain a majority stake in FCC Servicios Medio Ambiente Holding with 75.01 percent, added the company.

That FCC stock they’re up 4 percent.

The company said proceeds from the sale will be used primarily for finance strategic opportunities and corporate needs.

Bankinter analysts describe the operation as positive presupposes the inclusion of a strategic partner without losing control of the core business.

Other Spanish construction and engineering companies such as FCC, Sacyr and Ferrovial they have tried to divest themselves of some of their service subsidiaries.

Ferrovial sold its waste management subsidiaries in Spain and Portugal to German PreZero International last year and reached an agreement to sell Amey Plc, its UK infrastructure and engineering services business, to focus on investing in road and airport projects in North America.

Sakyr is evaluating potential buyers for its waste management and services subsidiary, Valoriza Environmental Services, valued at around 500 million euros, to accelerate the growth of its concession infrastructure business, primarily in continental Europe, the UK, Australia and Canada.

FCC Medio Ambiente operates mainly in SpainPortugal, United Kingdom, Central and Eastern Europe, and the United States.

According to a statement by the FCC, the CPP group, which manages Canadian state pension fundhad about C$570 billion ($426.26 billion) of assets under management at the end of March, mostly outside Canada.

The operation still needs approval from the authorities competition and financial institutions.

srgs