The Veolia / Suez merger "makes sense" for Castex

A Veolia water treatment plant (illustration).

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The merger of the two French water and waste giants Veolia and Suez "makes sense" from an industrial point of view, Prime Minister Jean Castex ruled on Thursday, while recalling that the State would be vigilant on maintaining employment in France.

Among the "essential" conditions for the State to see this operation in a positive light, figure "the sustainability of employment" and "industrial logic", said the head of government during a press conference on the stimulus plan.

“It has to make sense, without however, and we will watch it closely, that it can create monopolies, particularly in the water and sanitation sector (...) and it seems to me that the operation in question makes sense, ”argued Castex.

Suez considers this takeover proposal "particularly hostile"

Moreover, "this must not be the prelude to a loss of sovereignty in these strategic sectors and it is better for French investors than investors who would testify (...) to a loss of sovereignty", he said. added.

The State, Engie's reference shareholder, is watching this issue “closely”, the Prime Minister added.

Antoine Frérot on the plan to buy Suez by Veolia: "I am convinced of its usefulness (...) It is about innovating and accelerating our innovation" # Europe1 pic.twitter.com/Fsai64Vzv2

- Europe 1 🎧🌍📻 (@ Europe1) September 3, 2020

Veolia, the world leader in water and waste treatment, wants to buy out its historic competitor Suez, starting with the acquisition of most of the shares (29.9%) held by Engie.

Suez management on Wednesday judged this takeover proposal "particularly hostile" and affirms that it is mobilizing "to preserve the integrity of Suez".

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• Recovery plan

• Jean Castex

• Industry

• Economy

• Veolia

• Suez