Veolia and SUEZ signed a combination agreement on 14th May that allows the merger of the two groups to move forward, with an offer price of €20.50 per share (coupon attached). The full cash offer represents a significant premium on the intrinsic value of SUEZ.
Veolia's plan to create a global champion of ecological transformation is near, with a solid leadership team, post-merger revenues of around €37 billion including all five strategic SUEZ assets identified initially, and industrial synergies delivering significant value creation for Veolia shareholders today and in the future. This combination will have a unique and lasting impact for employees, whose dedication will be paramount for a successful integration.
The groups have also agreed on the formation of a new SUEZ, a sustainable group from an industrial and social standpoint with revenues of around €7 billion, owned by a Consortium of primarily French investors - Meridiam, Global Infrastructure Partners, Caisse des Dépôts and CNP Assurances who have committed to a significant four years of job security for SUEZ employees in France. The new group will have real growth potential thanks to its international presence (over €1bn in turnover) and having the needed engineering, technological, service and digital skills in-house. This is good news for customers, municipalities and industries, and public authorities.
SUEZ and Veolia have targeted the end of 2021 to simultaneously close the public offer and the sale of the new SUEZ to the Consortium, subject to regulatory and competition approvals. You can find out more about the expected timeline in our FAQ section.
Veolia and SUEZ will both continue to provide timely and relevant updates via their usual channels and this website. Sign up for the latest updates on the merger to stay informed or contact us here.
Read the full announcement, including statements from Veolia and SUEZ leadership:
April 12, 2021
"This agreement is beneficial for everyone: it guarantees the long-term future of SUEZ in France in a way that preserves competition, and it guarantees jobs. All stakeholders in both groups are therefore winners. The time for confrontation is over, the time for combination has begun"
Antoine Frérot, Chairman & CEO of VeoliaApril 12, 2021
“The deal comes at a time when governments world-wide are boosting spending on infrastructure as part of efforts to recover from the pandemic and overhaul their economies to meet commitments under the Paris climate accord.”
Nick Kostov, Wall Street JournalApril 13, 2021
“The enlarged Veolia will have 37 billion euros in annual revenue, compared with 26 billion euros last year, and greater exposure to faster-growing international markets.”
Francois de Beaupuy, BloombergApril 14, 2021
“The success of the deal is mostly due to the determination of Antoine Frérot, Veolia's CEO, who succeeds where some of his predecessors have failed. The takeover is expected to be completed in early autumn 2021.”
Les Echos
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