Veolia take over Suez

As Suez strived to remain independent, the world’s two largest waste and water groups announced earlier that they had reached a deal of €20.50 per share – a figure that values Suez’ equity at close to €13 billion. Shares in Suez rose 7.5% to €19.80 by Midday in Paris, with Veolia’s shares rising by over 9%. The two groups have been locked in public battle since last August, when Veolia purchased 29.9% of Suez from French energy group Engie, saying that it wanted to launch a full bid for its rival. Engie is also set to receive a top-up on the price it received at the time. Suez made many attempts to bat off the takeover bid – refusing to engage, putting up several legal obstacles, threatening to divest assets and putting together an alternative offer.

The new combined business will have revenues of around €37 billion. The two groups have agreed to enter into definitive merger agreements. A “new Suez” will be created, forming a coherent and sustainable group with revenues of around €7 billion”. The new company will be made up of water and waste operations in France as well as some international assets such as those in Italy, India and parts of Africa. Smaller Suez will have an employee shareholder base capped at 10% and will be bought by private equity groups GIP, Ardian and Meridiam as well as the French state investment bank Caisse de Dépôts, all of which were allied with one of the two companies during the hostilities.

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x