Water

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.

Suez’s $3.4 bln GE deal just holds water

8 Mar 2017

The French company is paying a higher multiple for General Electric’s H2O unit than recent takeovers even though its target has lower margins. And promised revenue synergies look meager. Cost cuts and a global need for water infrastructure, though, should help this deal flow.

Viewsroom: Trump’s management failures

16 Feb 2017

The president's vacillating over firing national security adviser Michael Flynn is the kind of mistake that gets corporate chiefs fired. Toshiba deals its way to a $6.3 bln loss. California's water woes are a national wake-up call. And Wall Street parties like its 2007.

China effluent enthusiasm will survive short stink

28 Nov 2016

Short-seller Glaucus alleges fraud at sewage specialist CT Environmental, the second scandal in the industry this year. It is a dirty business but investors will hold their noses: with greener policies and urbanization pressures, China’s wastewater sector is anything but the pits.

India’s Silicon Valley finds H2O everyone’s worry

14 Sep 2016

A dispute over water shut down the tech hub of Bengaluru. The city’s IT giants and startups are not water-intensive, yet global firms like Accenture and Infosys suffered. It is a reminder that environmental issues are costly, indiscriminate, and evermore real.

Water deal pipes in refreshing M&A taste

15 Aug 2016

Xylem's $1.7 bln purchase of Sensus will end the metering specialist's tenure as one of private equity's longest-held investments. Unlike in some mergers, there's no scarcity of logic. The match fits cleanly with Xylem boss Patrick Decker's stated goals and the price looks right.

Water woes are a drain on Make in India

26 Jul 2016

India has long undervalued one of its most precious resources. Chronic mismanagement of water in the country is already a strain on factories. Now the worry is that it will hold back Prime Minister Narendra Modi’s big plan to create jobs and turn India into a manufacturing hub.

Climate deal suffering from serious water shortage

22 Apr 2016

The Paris agreement global leaders are formally signing on Earth Day doesn’t mention water once. But the world’s dirtiest industries are also the thirstiest. Cutting CO2 emissions needs wiser H2O regulation and pricing. The energy sector will be especially vulnerable.

Optimism seeps through cracks in dam of water woes

22 Mar 2016

Demand for H2O is rising, more nations are using it as a weapon and drought is hitting much of the world. Yet more companies and governments are acknowledging the threat while sensing opportunities. The result should be greater willingness to act – and to finance new solutions.

Water industry could turn Enron moment to action

17 Mar 2016

A California utility compared its drought-prompted accounting gimmicks to those of the energy firm, drawing a fine. The incident highlights the H2O sector’s $1 trln funding crisis caused by water shortages, floods and aging pipes. The trick is to make a faux pas an opportunity.

China’s record waste deal is far from rubbish

5 Feb 2016

State-backed Beijing Enterprises is buying Germany’s Energy from Waste for $1.6 bln. Unlike some of China’s splashier foreign deals, this looks decently priced and makes obvious strategic sense. China badly needs more clean-technology expertise. Expect more trashy buys.

Effluent packs economic and environmental punch

21 Aug 2015

Fracker Pioneer National is about to start using treated sewage in its wells. United Airlines may use animal waste as fuel. Recycling feces is now efficient enough to produce both energy and drinking water. This new spin on natural gas offers benefits for the land and air, too.

Singapore could use a fresh approach to water

3 Aug 2015

The city-state built its economic success partly on carefully managing scarce H2O and reducing reliance on foreign sources. Now Singapore wants to be self-sufficient. But with the population set to double, the quest for water independence risks becoming a distracting pipe dream.

Garbage-hauling upstart could trash establishment

23 Jul 2015

Rubicon, whose techie model threatens to rattle the $48 bln U.S. rubbish industry, is close to a fresh $50 mln injection and just added Uber’s former CFO to its board. If dominant operators like Waste Management and Republic Services aren’t flexible, their new rival may clean up.

Nestlé wades into purest form of water risk

2 Apr 2015

The $243 bln Swiss giant faces populist protests for bottling and selling H2O from Canada and drought-hit California. The potential harm to its reputation may not be worth the effort. It’s Nestlé’s least profitable business, and consumers might just as well drink from the tap.