After six months of financial and judicial battle, Veolia and Suez they find an agreement on a merger that will lead to the birth of a “world champion of ecological transition” from 37 billion in turnover.
The news is communicated by Veolia, which illustrates the details of the operation through a note. The colossus led by Antoine Frerot will pay 20,5 euros for each Suez share, 2,5 euros more than the 18 euros previously proposed and judged insufficient by rivals. Altogether Veolia will disburse 13 billion euros against the 11,3 expected in the past.
Last October, Veolia bought a 29,9% stake in Suez from Engie and subsequently launched a takeover bid on the remaining 70,1%. The offer was officially rejected by the board of Suez, according to which "the transaction designed by Veolia" would have "put the Suez 2020 plan at risk" and impacted "negatively on the value of the group". Crux of contention, in addition to the price judged insufficient from Suez, also the division of the activities related to waste management and water services, which led the two companies to clash in court. The French Economy Minister, Bruno Le Maire, even intervened on the matter, asking for an intervention by the AMF (the French Consob). We recall that the deal between the two French giants also indirectly concerns Italy, given that Suez is the second largest shareholder of the Capitoline multiutility That with 23,3% of the capital.
After months of back and forth, the two multiutilities have however reached an agreement even if, the note underlines, the final agreement will arrive by next May 14th.
“This agreement is a win-win: it guarantees the sustainability of Suez in France, preserves competition and guarantees employment. The stakeholders of the two groups are therefore the real winners. The time for confrontation is over, the time for reconciliation has begun,” he said Antoine Frerot, president and CEO of Veolia. The number one in Suez, Bertrand Camus, stated that “this agreement in principle offers every opportunity to obtain a global solution that offers the essential social guarantees for all employees and potential customers”. “I would like to thank all the Suez teams for their amazing mobilisation,” she added.
The novelty had immediate repercussions in MY BAG: in Paris Suez shares gain 7,91% to 19,91, while Veolia shares rise by 7,58% to 24,28 euros.
