OREANDA-NEWS. Mitsui & Co., Ltd. has agreed with Aqualia Gestion Integral del Agua, S.A. ("Aqualia") to enter the Czech water concession business conducted by a Czech water management company, Severomoravsk? vodvody a kanalizace Ostrava a.s. ("SmVaK").

Mitsui, through Mit Infrastructure Europe Limited ("MIE"), its newly established subsidiary, will acquire 49% of Aqualia Czech, S.L., the holding company of SmVaK, and participate in the operation and management of SmVaK and the Czech water business. In addition, through MIE, Mitsui will acquire 49% of Aqualia infraestructuras in?en?ring, s.r.o. ("AII"). AII is a company specializing in engineering and construction of water and wastewater facilities as well as laboratory services mainly for SmVaK. The total purchase price is approximately JPY 12.5 billion.

SmVak is the principal water supplier with a "full-cycle" water concession business for production and distribution of drinking water, discharge and treatment of waste water, bulk water supply (including operation and maintenance, capital investment and billing and collection) in the regions of Moravia and Silesia in the Western Czech Republic, together with water supply operations in Poland. SmVaK produces and supplies drinking water to 1.3 million users and owns a 6,000km supply network along with 41 water and 67 wastewater plants.

Aqualia, the third largest water management company in the world and a subsidiary of the citizen services group, Fomento de Construcciones y Contratas, S.A. ("FCC"), heads the water division of FCC. Aqualia is currently operating and providing services to over 1,100 municipalities and more than 30 million people in 17 countries. Aqualia responds to the needs of all parties, private and public, at all stages of the water cycle, providing water for human, industrial, and agricultural uses. This first collaboration between Aqualia and Mitsui will contribute to developing other projects aiming at the improvement of supply and sewage water network, treatment facilities and new water management concessions in other regions.

Mitsui has expanded its water business over the years through various project activities including: participation in the Water Supply project in Izmit City, Turkey with Thames Water Utilities Ltd. of United Kingdom in 1995; investment in Thai Tap Water Supply Public Co., Ltd., the largest private water operator in Thailand in 2006; acquisition of Atlatec, S.A. de C.V. of Mexico in 2008, which enabled Mitsui to obtain water treatment plant engineering, construction, and operation & maintenance capabilities; and establishment of a joint venture company equally held by Mitsui and Hyflux Ltd in 2010, which is currently operating 24 water treatment plants in China. Mitsui continues to contribute in solving the various water related problems the world is facing today.