Veolia Transport of France agreed to buy half of Hong Kong’s tram system from Wharf, the local conglomerate, and to operate and manage the network, which has been running on the territory’s main island since 1904.

Veolia, part of Euronext-listed Veolia Environnement, said it spent “far less than €100m [$135m]” for the acquisition of Hong Kong Tramways, which is part of a strategic expansion in China. It won a contract to operate six bus networks last December in its first foray into the country.