ESSEN/LONDON, Dec. 15, 2000—Thames Water plc., London, a member of RWE Group, Essen, today completed the purchase of the controlling stake in Empressa de Servicios Sanitarios del Bio-Bio S.A. (ESSBIO), Concépción.
The stake is being purchased for a consideration of U.S.$ 336 million from the government of Chile, the previous majority owner. Thames Water holds 50.9 % of ESSBIO.
ESSBIO supplies approx. 1.5 million people in Concépción, Chile's second largest city, with water and wastewater services. The company currently generates annual sales of approx. U.S.$ 46 million with some 700 employees. Thames Water intends to invest more than U.S.$ 100 million in the next five years.
By acquiring ESSBIO, Thames Water is expanding its strong international presence. The acquisition of the U.S. company E'town, New Jersey, was completed at the end of November of this year. E'town is a service provider for over 1 million people.
As early as March of this year, Thames Water had acquired the majority of the Chilean water company ESSEL together with Electricidade de Portugal. The company serves a population of half a million in the city of Rancagua, approx. 80 km south of Santiago.
Bill Alexander, Thames Water's Chief Executive, said: "This win builds upon our successful acquisition of ESSEL in March this year, and consolidates our position as number two in the Chilean marketplace. Thames Water has rapidly become a partner of choice in Chile and I am delighted to extend our world class water services to our new customers."
Dr. Dietmar Kuhnt, Chief Executive Officer of RWE AG: "The acquisition of the controlling stake in ESSBIO by Thames Water has added to the strength of RWE's presence in the international market for water and wastewater."
The RWE Group has more than 36 million water and wastewater customers worldwide.
