French utility operator Veolia has negotiated a merger with energy company Suez, Report informs.
The companies started merger negotiations back in August last year. In October, Veolia reached an agreement with another French energy company, Engie, to buy out a 30 percent stake in Suez.
At the same time, Veolia announced its intention to buy out the remaining shares of its competitor. Veolia was willing to pay 18 euros for each share of Suez. Thus, the purchase would amount to 3.4 billion euros. However, Suez shareholders found these conditions unacceptable and the takeover attempt hostile.
The two groups have agreed on a price of €20.50 per Suez share (coupon attached) subject to the signature of the Combination Agreement. Subject to obtaining a fairness opinion in accordance with applicable regulations, this offer would be recommended by the Board of Directors of Suez upon signature of the definitive agreements.
The two groups have agreed to enter into definitive merger agreements by May 14.
The agreement would allow the creation of a new Suez made up of assets forming a coherent and sustainable group from an industrial and social standpoint, with real growth potential, with revenues of around €7 billion.
The implementation of Veolia's plan to create a global champion of ecological transformation, with revenues of around €37 billion, through the Suez takeover bid, in which all the strategic assets identified by Veolia will remain.
In order to guarantee the conditions for the long-term development of the new Suez, its scope will be the municipal water and solid waste activities of Suez in France (including CIRSEE, the main research center in France), as well as the activities of Suez in particular in water and in the following geographies : Italy (including the stake in Acea), the Czech Republic, Africa (including Lydec), Central Asia, India, China, Australia, and the global digital and environmental activities (SES).