Veolia Acquires 29.9% Stake in Suez; Plans Takeover
By Giulia Petroni
Veolia Environnement SA said late Monday that it has acquired a
29.9% stake in Suez SA from Engie SA at a price of 18 euros
($21.16) a share, paving the way for a takeover of the
water-and-waste management rival.
The French company said it would guarantee job security for all
of Suez's employees in France and that infrastructure fund Meridiam
would acquire Suez's French water-activities arm in order to
Veolia reiterated its intention for a full takeover, saying it
aims to file a voluntary public takeover bid for the remaining Suez
The offer price will match the price of EUR18 a share it offered
to Engie, subject to adjustments, in a deal that would value Suez
at EUR11.31 billion.
"This offer will not be launched without first having obtained a
favorable opinion from the board of directors of Suez, with which
Veolia wishes to resume discussions as of tomorrow [Tuesday]," said
Veolia's Chief Executive Antoine Frerot.
The filing is expected to take place at the latest when Veolia
obtains the necessary regulatory approvals, in particular in
competition matters, within 12 to 18 months. The company, however,
said it could file the offer at any time before the
"Suez takes note of the purchase by Veolia of 29.9% of its
capital in a hostile manner and under unprecedented and irregular
conditions," the company said on Tuesday. "The group...will use all
the means at its disposal to protect the interests of its
employees, its customers and all its stakeholders, in particular to
ensure equal and fair treatment of all its shareholders and avoid a
creeping takeover or de facto control."
Write to Giulia Petroni at email@example.com
(END) Dow Jones Newswires
October 06, 2020 02:28 ET (06:28 GMT)
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