Veolia and SUEZ sign combination agreement

Veolia and SUEZ have signed a combination agreement, confirming their merger, which was formally announced on 11 April.

The agreement enables Veolia to acquire the strategic assets needed to pursue its goal of building a global champion in ecological transformation, while guaranteeing a coherent and sustainable industrial and social footprint for the new SUEZ, the companies said in a statement. It also reiterates the social commitments made by Veolia and confirms that the acquisition price per share of SUEZ Group will be raised to €20.50.

A memorandum of understanding has been signed between the two companies, and the consortium of investors formed of Meridiam-GIP-CDC/CNP, to create ‘a new SUEZ’, with revenues of nearly €7 billion, comprising SUEZ’s Water and Recycling & Recovery businesses in France, as well as international assets, and growth prospects and development capacities both internationally and in France.

The revised Veolia offer would be recommended by the SUEZ board of directors before 29 June, after obtaining a fairness opinion from the independent expert (Finexsi) and the opinion of the group committee.

Antoine Frerot, chairman and CEO of Veolia, said: “This agreement represents a giant step forward for Veolia, for the French approach to ecological transformation, and for the preservation of the environment.

“I am very happy to welcome the SUEZ teams to be soon part of our project to build the world champion of ecological transformation and very satisfied that we will also be able to assure the sound, stable, and sustainable development of the new SUEZ: as I promised, this is a ‘win-win’ agreement.”

“The agreement between our two groups maintains France’s leading position in essential environmental services,” commented Philippe Varin, chairman of the board of directors at SUEZ.

“The new SUEZ will be able to draw on its technological and industrial know-how to develop in the water and waste businesses, with the support of a robust consortium. Veolia will benefit from the support of the teams joining from SUEZ and will hence pursue its project.”

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