PARIS – French conglomerate Veolia and rival Suez yesterday said they have signed a deal on the outlines of their merger to create a global champion in water services and waste management.
In a statement confirming an announcement earlier this week on an offer of €20.50 (RM102.68) per Suez share, the companies said the deal will power Veolia’s growth goals, while leaving a smaller but “coherent and sustainable” Suez.
Veolia chief Antoine Frerot hailed the agreement, under which his company will acquire a large part of Suez, as a “win-win” for the two firms.
It would leave his company free to pursue its ambition of becoming “the world champion of ecological transformation”, slated to have annual revenues of €37 billion and 230,000 employees worldwide.
The company wants to become a global leader in helping firms and cities reduce their environmental impact, including by recycling treated waste and reducing the use of resources.
Veolia’s €20.50-per-share offer was the breakthrough after months of bitter battles in the media and courts, topping a previous €18 bid.
The battle between the two companies was primarily over what would happen to Suez in the tie-up.
Under the final terms, Suez’s remaining activities will mainly cover waste and water in France, plus water in Italy, Senegal, China and India, leaving it with around €7 billion in annual revenue.
French investment fund Meridiam and the United States-based GIP will each own 40% of the new Suez, with the remainder held by France’s public Caisse des Depots. – AFP, May 15, 2021
