Veolia Environnement SA agreed to acquire its rival Suez SA, ending a long-running and bitter takeover battle that tested the limits of French corporate culture.
After months of fierce resistance from Suez’s management, Veolia finally unlocked a deal by offering a higher price and “social commitments” for employees of the utility. The deal gives Suez an equity value of about 13 billion euros ($15 billion), Veolia Chief Executive Officer Antoine Frerot told reporters.
Antoine Frerot
Photographer: Antoine Frerot/AFP/Getty Images
Veolia agreed to pay 20.50 euros a share for the roughly 70% of Suez it doesn’t already own, according to a statement on Monday. It bought its initial stake in the company last year for 18 euros a share.
The transaction will create a global giant in waste and water services under the Veolia umbrella with annual revenue of about 37 billion euros. It will also leave some elements of Suez to continue as a new business owned by a variety of French shareholders and private equity groups.
“This agreement is beneficial for everyone,” Frerot said in the statement. “It guarantees the long-term future of Suez in France in a way that preserves competition, and it guarantees jobs.”
The two companies will enter into a definitive agreement on May 14. The transaction will require approval from competition authorities in several countries.
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April 12, 2021 at 02:46PM
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Veolia Agrees to Buy Suez, Ending Bitter Takeover Battle - Bloomberg
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