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Veolia Environnment has confirmed its intention to sell its share of Veolia Transdev as part of a programme to reduce its debts, which will see the sale of EUR 5bn of assets over the next two years.

At an Investor Day held in Paris on December 6, Veolia Environnment Chairman & CEO Antoine Frérot announced that the company would concentrate on its water, environmental services and energy services divisions. The utility firm would now seek buyers for its 50% stake in Veolia Transdev, .railwaygazette.com reported.

In May 2010 Veolia Environnment concluded an agreement with state bank Caisse des Dépôts to merge Transdev and Veolia Transport. This included a long-term intention to float Veolia Transdev through an IPO, probably in 2012.

The company now wants to reduce net financial debt to less than EUR 12bn by the end of 2013 and to increase its financial flexbility.

‘The strategic plan that we are announcing today is going to drive a profound transformation of our company in order to adapt to the current economic and financial environment and to quickly position Veolia Environnment to capture the most attractive growth opportunities’, Frérot said.

Veolia Environnment is targeting EUR 220m in gross cost reductions for 2013 and EUR 120m in net cost reductions.