SNCF, Eurotunnel Acquire Veolia Cargo

Veolia Transport sold its Cargo division, including 20 European subsidiaries, to two rail freight operators, SNCF and Eurotunnel.

The SNCF group will acquire the rail companies based in Germany, the Netherlands and Italy. The Eurotunnel group, through its freight subsidiary Europorte 2, will acquire the French branch, including Socorail, Veolia Cargo France, Veolia Cargo Link and CFTA Cargo.

Created in 2003, Veolia Cargo was Europe’s largest private rail freight operator and generated revenue of $268 million in 2008.

Following the transaction, parent company Veolia Environnement said its indebtedness would be reduced by approximately $136 million. Other financial details were not disclosed. The transaction is expected to close by the end of the year, pending approval from European competition authorities.

Contact Thomas L. Gallagher at tgallagher@joc.com.