Global legal practice Squire Sanders has advised on a €700 million financing and completion of a special purchase agreement between the State of Berlin and RWE AG, Germany’s leading power producer, regarding a 25% stake in Berliner Wasserbetriebe, the Berlin water supply company.
The Squire Sanders team, led by Dr Kai Mertens, partner in corporate and corporate finance, and Markus Schmucker, partner in financial services, from the firm’s Berlin office, advised the lender, Investitionsbank Berlin, the state’s development bank, and the purchaser Berlinwasser Beteiligungs Rekom Berlin GmbH & Co. KG, a special purpose vehicle, 100% owned by the State of Berlin.
The transaction is the first major “remunicipalisation” in Germany whereby a state body buys back shares from a private investor in order to regain control on a formerly fully state-owned public utility. The State of Berlin had previously sold a 50% stake in Berliner Wasserbetriebe in 1999 to RWE AG and the French Veolia Group. The current transaction, approved by Berlin State Parliament as well as the competent cartel authorities, means that the State of Berlin now owns approximately 75% of Berliner Wasserbetriebe and is in negotiations to buy back Veolia’s share as well.
“We’re delighted to support Berlin and its public development bank on an important investment which allows an essential public utility to be brought back into public ownership,” said Dr Kai Mertens.
