Veolia, the world leader in environmental services, announced that it had given Engie on Sunday a firm offer of 2.9 billion euros with a view to buying back almost all of its stake in its competitor Suez.
An opportunity to build a "great French world champion"
According to the Veolia press release, the offer concerns 29.9% of Suez, of which Engie still holds a total of 32%. "This historic opportunity will make it possible to build the great French world champion of ecological transformation," commented Antoine Frérot, CEO of Veolia, quoted in the press release. If the offer to Engie is successful, Veolia intends to subsequently file a takeover bid for the remaining Suez shares.
The relationship between Suez and Engie has often been the subject of speculation, giving Engie the desire to either regain control of its former subsidiary or to completely withdraw from it. In July, Engie announced its desire to refocus its activity, by selling assets deemed non-strategic and minority stakes. "Concerning Suez, I would say that everything is open" concerning the participation in the company, then declared the chairman of the board of directors of Engie, Jean-Pierre Clamadieu.
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"We create the group for the world after"
For the CEO of Veolia, "Engie's statement creates the opportunity", but "this project has the force of evidence" and goes "in the direction of history". "We are creating the group for the world after", he assured Sunday in an exchange with the press, evoking "the need for solutions for ecological transformation". If both parties come to an agreement, the transaction will have to obtain the approval of the competition authorities.
To this end, Veolia indicates that it has identified an acquirer for the activities of Suez Eau France, in the person of Meridiam, a French infrastructure management company, which has committed to this acquisition, for an undisclosed amount.
Antoine Frérot assured that a meeting of the two groups would have no impact on employment in France, including for water on the Meridiam side. "This project is part of a friendly approach, as we share with Suez the same jobs, the same culture and the same values," he said. Contacted by AFP, Suez and Engie did not comment immediately.