An agreement to this effect was signed between both the companies.
Suez Environnement Asia already owns 60% stake in SembSita Pacific, which focuses on waste management.
With this acquisition, Suez will bolster its portfolio through full integration of its water, waste and construction activities in Australia. It plans to develop cross-selling and extract operational synergies in the short-term.
While, the deal will allow Sembcorp to refocus its investments for core strategic business units.
Suez Environnement CEO Jean-Louis Chaussade said: "This transaction will allow Suez to integrate its whole portfolio of activities in Australia, enabling an acceleration of growth and business development momentum in a very promising market.
"This will also lead to the extraction of both operational and financial synergies. It illustrates our strategic ability to maximize our value creation from existing geographical strongholds.
"Following this acquisition, the financial flexibility of the Group remains strong and keeps SUEZ ready to seize new development opportunities."
Sembcorp Industries Group president and CEO Tang Kin Fei said: "Proceeds from its sale will provide us with additional resources to invest in businesses and markets with high growth potential, in line with our focus on the energy and water sectors."
Subject to approval from the Foreign Investment Review Board in Australia, the acquisition is expected to be completed by year end.
Image: SembSita Pacific focuses on waste management. Photo: courtesy of dan / FreeDigitalPhotos.net.
