Share
Getting your Trinity Audio player ready...
|
Global warming, along with a protracted drought in the U.S. southwest, is driving up both the price of water and water technology.
Xylem, a global water technology company based in Washington, D.C., is buying Pittsburgh-based Evoqua, which provides water treatment services.
The $7.5 billion all-stock deal was announced Monday.
About 65% of the United States is experiencing drought, according to the U.S. Drought Monitor.
Drought Amps up Investor Interest in Water Tech Companies
Xylem says it expects the purchase to deliver $140 million in cost synergies within three years. The deal is set to close in mid-2023. If the transaction clears regulatory hurdles, Xylem shareholders will own 75% of the combined company and Evoqua shareholders will own 25% of the company.
“Water stocks, many of them utilities, have traditionally received little attention from investors. But supply-demand dynamics have intensified over the past year, placing increased attention on suppliers of water purification and treatment, desalination, and other related technologies.” investors.com reported.
The acquisition reflects the fact that water managers for communities, businesses, and farms are increasingly desperate to acquire water — or save water —at reasonable prices. That’s because traditional water sources such as melting snowpack and ground pumping are dwindling under the pressure of global warming.
RELATED TOPICS:
Senate Dismissed Two Articles of Impeachment, Ending Trial on Mayorkas
7 hours ago
Netanyahu Dismisses Calls for Restraint, Says Israel Will Decide Iran Attack Response
7 hours ago
Biden Pledges to Block Japanese Takeover of US Steel and Promises Tariffs on Chinese Steel
8 hours ago
Don Arax Talks About His New Football Job at Visalia’s Central Valley Christian
8 hours ago
Career-High Strike Outs for Ryan Weathers as Marlins Best Giants 6-3
10 hours ago
LeBron’s Lakers Top Pelicans in Play-in, Set up Playoff Rematch With Nuggets
10 hours ago
Storm Dumps Record Rain and Floods Dubai’s Airport
11 hours ago
Biden Backs House’s Aid Package for Ukraine, Israel While Speaker Johnson Battles to Retain Position