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One of the largest train operators in Sweden Veolia to be sold
Wednesday, 07 December 2011
The owner of the transport giant Veolia, with responsibility for public transport in a number of lines in Sweden, is in financial crisis. Now Veolia is to leave an entire transport sector, as the Swedish operations with 5,000 employees and annual sales of nearly Skr2.7 billion is for sale.
Veolia was earlier contract for the subway in Stockholm and now has responsibility for train service between Stockholm-Malmö, Linköping-Kalmar, commuter rail lines, commuter train, Light Rail and Nockebybanan and city bus services in several small towns.

Veolia operations in some 39 cities, from Haparanda in the north to Ystad in the south is t be quashed.
The news that the French group Veolia to sell its transport division came in connection with Tuesday's Capital Markets in Paris. The background is that Veolia has gigantic debt mountain in the equivalent of Skr135 billion, mainly built up within the Group's other activities, including hydropower.

The company management hope to receive the equivalent of Skr45 billion by selling its 50 percent stake in the transportation division. The rest of the shares of Veolia transport division will be owned by the French national bank CDC and the speculation now is the bank wants to take over the company.

Another solution could be to divide the transportation division and sell them to different players. According to the latest annual turnover of Veolia's Swedish operations, Skr2 684 million was made at a loss of Skr82 million before tax. Compared with 2009 sales plummeted by 32 percent and it is explained by the company lost the contract in the Stockholm subway last year.

Recently, Veolia took over the operation of the Swedish Öresund trains and is expected to start the service early next week. It is not clear how this announcement will affect the deal.
By Scancomark.se Team

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