United Utilities to Sell its Australian Subsidiary

United Utilities has entered into an agreement to sell its subsidiary United Utilities Australia for A$225m (US$200m).

United Utilities, the British water giant, has agreed to sell its wholly owned subsidiary to a consortium led by Japanese conglomerate Mitsubishi Corporation.

For the sale agreement, the consortium will pay A$176m (over US$155m) in cash and A$49m (over US$43m) in net debt assumed by the purchaser.

The consortium comprises Mitsubishi Corporation, the Innovation Network Corporation of Japan, Manila Water Company and JGC Corporation.

The financial deal is expected to be completed by the second half of 2010.