French energy and environment group Suez said it will take a 15 percent stake with its partner in a Chinese company for 1.5 billion yuan ($214.1 million).
Suez Environment and its Hong Kong partner New World Services will buy into Chongqing Water Group (CWG), a major water service supplier, the French group said in a statement.
"We already assist Chongqing in achieving its environmental goals through our joint venture water companies. We are excited about further strengthening our relationship through this investment," Jean-Louis Chaussade, CEO of Suez Environment, said.
CWG runs 32 water treatment plants and 35 wastewater facilities in Chongqing that provide services to about 8.4 million residents.
Suez Environment has two joint ventures in the municipality. Chongqing Sino French Water Supply, a 60-40 venture with Chongqing Water Holding (Group), was set up in 2002.
It's the sole drinking water supplier and network manager in the northern part of Chongqing. It serves 1 million residents as well as a large industrial and commercial community.
The Chongqing Sino French Tangjiatuo Sewage Treatment Plant is its second joint venture in the municipality, a 50-50 business with Chongqing Water Holding (Group). It opened in January 2007 and provided services for around 1 million people last year.
The water market is one of the most open and lucrative infrastructure sectors in China for foreign equipment providers, contractors, operators and investors, KPMG said in a recent report.