As per the all-cash proposal, Veolia to pay €15.50 per share to Suez shareholders, for each share held
French water and waste firm Veolia has made a bid of €2.9bn to acquire 29.9% stake in Suez from French gas and power utility Engie, in order to create a “world champion of ecological transformation”.
As per the all-cash proposal, which is valid until 30 September 2020, Veolia will make a payment of €15.50 per share to Suez shareholders, for each share held.
Veolia chairman and CEO Antoine Frérot said: “This historic opportunity will enable us to build the French world champion in ecological transformation, while accelerating international development and strengthening the new entity’s capacity for innovation.
“This project is part of a friendly approach, as we share the same businesses, corporate culture and values with Suez.”
Veolia considers acquiring the rest of shares in Suez
Subject to acceptance by Engie and the completion of 29.9% stake acquisition in Suez, Veolia plans to formally bid for the rest of shares in Suez.
The French firm seeks to purchase all of Suez’s French water activities, together with the division’s engineering and R&D teams related to this division.
Veolia expects the transaction to broader expertise, increase capacity for innovation, and strengthen geographical positions.
However, commenting on the bid, Suez said the Veolia’s approach has not been solicited.
Engie plans to assess the Veolia proposal in the coming weeks.
The firm said it would give preference to the most attractive solution for its shareholders.
In a press statement, Veolia said: “Finally, this transaction would create value for Veolia shareholders from the very first year, thanks in particular to operating and purchasing synergies estimated at 500 million euros, which have been taken into account in the price offered to Engie.”