Veolia expects the Suez RV OSIS business to make it a major player in the sanitation maintenance industry
Veolia seeks to buy Suez unit. (Credit: Adam Radosavljevic from Pixabay)
French water and waste management utility company Veolia has signed an exclusive agreement with Suez Group to acquire its subsidiary sanitation networks maintenance company Suez RV OSIS for around €298m.
The agreement, which is in the form of a unilateral purchase undertaking, is subject to an exclusivity period of 150 days whereby the parties would finalise their agreement.
Veolia expects the Suez RV OSIS business to fit well with its Société d’Assainissement Rationnel et de Pompage (SARP) division while making it a major player in the sanitation maintenance industry.
SARP and Suez RV OSIS to offer new services
Additionally, the merger of SARP and Suez RV OSIS is expected to allow the two entities to offer new services to its customers.
SUEZ CEO Bertrand Camus said: “We are pleased to announce the proposed sale of OSIS for a value that recognizes the human and technical asset developed in the company.
“We believe that we have found a very good home for the business and its employees for the next phase of its development. The transaction reflects the quality of the businesses within SUEZ, including those which are part of our asset rotation plan.”
Subject to regulatory approval and customary closing conditions the transaction is scheduled to be completed in the first half of next year.
In a press statement, Veolia said: “It would take place in accordance with the applicable obligations concerning the consultation of staff representative bodies and would be subject to prior authorization by the competent merger control authority.”
Earlier this year, Singapore-based Sembcorp, through its wholly-owned subsidiary SembWaste, has agreed to acquire Veolia ES Singapore (VESS) and the public cleaning business of Veolia ES Singapore Industrial (VESSI) in a deal nearly S$28m ($20.73m).