French utility giant Veolia is planning to put its three UK-regulated water companies, Veolia Water Central, Southeast and East, up for sale.

The proposals are part of Veolia’s strategy to sell off €5bn (£4.3bn) of its assets, including a 50pc stake in UK public transport company Transdev, in an effort to reduce its net debt from €15bn to less than €12bn by the end of 2013. Last month credit ratings agency Fitch lowered Veolia’s credit outlook after two profit warnings -  after one the world's biggest water utility saw its market value halve in July.

The three companies together supply water over 3million people and have a combined turnover of £269m. However, Veolia said it had no plans to sell off its other waste, non-regulated water or energy services businesses in the UK.

Earlier this year Veolia announced that it was planning to scale back its global spread from operations in 77 countries to 40. The company strategy will now focus on central and Eastern Europe, China, France, on energy services in the US and waste operations in the UK.

Antoine Frérot, Veolia Environnement Chairman and Chief Executive Officer described the strategic plan as "ambitious but realistic" and said it  would drive a profound transformation of the company.