# SECURITIES
  AND EXCHANGE COMMISSION 
  Washington, D.C. 20549

# FORM 6-K

# REPORT OF
  FOREIGN PRIVATE ISSUER
  PURSUANT TO RULES 13a-16 OR 15d-16 OF
  THE SECURITIES EXCHANGE ACT OF 1934

July 29 , 2004

VEOLIA
  ENVIRONNEMENT
(Exact name of registrant as specified in its charter)


36-38, avenue
  Kléber
  75116 Paris, France
  (Address of principal executive offices)

|(Indicate
        by check mark whether the registrant files or will file annual reports
        under cover Form 20-F or Form 40-F.)
|-------------------------------------------------------------------------------------------------------------------------------------

Form 20-F X       Form 40-F

|(Indicate by check
      mark if the registrant is submitting the Form 6-K in paper as permitted
      by Regulation S-T Rule 101(b)(1)):____
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|(Indicate
      by check mark if the registrant is submitting the Form 6-K in paper as permitted
      by Regulation S-T Rule 101(b)(7)):____
|---------------------------------------------------------------------------------------------------------------------------------------------

|(Indicate
      by check mark whether the registrant by furnishing the information contained
      in this Form is also thereby furnishing the information to the Commission
      pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Yes      No X

|(If Yes
      is marked, indicate below the file number assigned to the registrant in
      connection with Rule 12g3-2(b):82-_______________.
|------------------------------------------------------------------------------------------------------------------------------------------------

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# Press release

# Veolia Environnement
completes its efforts to concentrate on its strategic activities and continues to
strengthenits financial condition

# Veolia Environnement
has signed a definitive agreement for the sale of its stake in B 1998 S.L., the holding
company that owns 52.5% of FCC

Paris, July 29th, 2004.
Veolia Environnement (Euronext: VIE and NYSE: VE), announces that it has entered, on July 28th 2004, into a definitive agreement to sell its 49% stake in B 1998 S.L.,
the holding company which owns 52.5% of Fomento de Construcciones y Contratas
(FCC), to a company controlled by Mrs. Esther Koplowitz. The transaction will
reduce Veolia Environnements net indebtedness by 1.1 bn, and will result in a
total cash payment to Veolia Environnement of  916 million (before transaction
fees), including an exceptional dividend to be paid by B 1998 to Veolia Environnement
prior to the sale.

FCC would like to remain a
highly diversified group, while we are completing our effort to concentrate on our
environmental services business, said Henri Proglio, Chairman and Chief Executive
Officer of Veolia Environnement. Because our development strategies are not
completely aligned, I have decided, together with our Board of Directors, to pursue the
best possible option: the sale of our stake on highly satisfactory terms, in the best
interest of our shareholders. We will still continue to be interested in the Spanish
environmental services market, which remains robust.

The transaction, which is expected to
be completed by the end of the third quarter of 2004, is subject to applicable Spanish
anti-trust regulatory approvals.

FCC, a publicly-listed company on the
Madrid Stock Exchange since 1900, is one of Spains most important construction
companies, with over 61,300 employees and 6,051 million of consolidated revenues in
2003. Approximately 48% of FCCs 2003 revenues were realized in its construction
business, 28% in services, 14% in cement and 10% in other activities.

For Veolia Environnment, the
transaction reflects its strategy to concentrate on its core environmental services
activities. It will also allow Veolia Environnement to strengthen its financial condition.
At the same time, FCC will be able to pursue its development in its three main activities:
construction, cement and services.

Veolia Environnement currently
accounts for its 49% interest in FCC under the proportional consolidation method. Veolia
Environnements interest in FCC contributed 2,965 million to its consolidated
revenues in 2003, and 275 million to its consolidated EBIT. (EBIT corresponds to
operating income as defined under Regulation 99-02 of the CRC, the French accounting
regulations authority).

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Taking into account the debt of B 1998
and the proportional consolidation of FCC in Veolia Environnements consolidated
accounts, this transaction will result in a 1.1bn decrease in Veolia
Environnements net indebtedness. The sale terms implicitly value FCC within B 1998
at approximately 30 per FCC share.

Veolia Environnement acquired its
stake in FCC from Vivendi in 2000 for a total consideration of 691 million. The book
value of FCC in Veolia Environnements consolidated accounts is 810 million as
of December 31, 2003.



**A conference-call is
organised by Veolia Environnement on****Thursday 29th of July,
2004 at 9.30 am (Paris time)

with
Jérôme Contamine (Senior Executive Vice President)**

# Please dial the
following number

**+44 208 400 63 08** **or+33 1 56 38 35 08******




**A replay is available
until August 5th, 2004**

**Action Replay US: +1 303 590 30 00 (pincode 11004656#)**

**Action Replay UK: +44 208 515 24 99 (pincode 112611#)**

**Action Replay FR: +33 1 70 99 32 94 (pincode 132668#)**



**Important Disclaimer**Veolia Environnement is a corporation
listed on the NYSE and Euronext Paris. This press release contains forward-looking
statements within the meaning of the provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These statements are based on managements current
expectations or beliefs and are subject to a number of factors and uncertainties that
could cause actual results to differ materially from those described in the
forward-looking statements. These factors and uncertainties include in particular risks
related to the ability of Veolia Environnement to complete its divestiture transactions as
a result of customary conditions precedent and closing adjustments, as well as the risks
described in the documents Veolia Environnement has filed with the U.S. Securities and
Exchange Commission. Veolia Environnement does not undertake, nor does it have, any
obligation to provide updates or to revise any forward-looking statements. Investors and
security holders may obtain a free copy of documents filed by Veolia Environnement with
the U.S. Securities and Exchange Commission from Veolia Environnement.

*Analyst and institutional investor contact: Nathalie Pinon +33 1 71 75 01 67*

*US Investor contact: Brian Sullivan +(1) 941 362 24 35*

*Press
release also available on our web site: http//veoliaenvironnement-finance.com*

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SIGNATURES

Pursuant
  to the requirements of the Securities Exchange Act of 1934, the registrant has
  duly caused this report to be signed on its behalf by the undersigned, thereunto
  duly authorized.

Dated: July 29,
  2004

| | VEOLIA
      ENVIRONNEMENT                                                                                   
| | -------------------------------------------------------------------------------------------------------------
| | By: /s/ Henri Proglio
            Name: Henri Proglio
            Title: Chairman and Chief Executive Officer
| |