"Water war": Suez-Veolia, an agreement finally found between the two French giants
Veolia will buy a large part of Suez's international operations for a total turnover of 37 billion euros.
AFP / File
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The Boards of Directors of the two French companies announced on Monday April 12 that they had reached a compromise with a view to a merger.
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The agreement reached between Suez and Veolia will put an end to several months of financial, media and legal battle between the two giants of water and waste.
20.50 euros per share
Under the terms of the agreement, Veolia finally agreed to raise its offer and pay 20.50 euros per share to Suez.
This merger should allow the birth of a world champion of ecological transformation around Veolia with turnover of around 37 billion euros.
The agreement also provides for the creation of a new Suez, held by majority French shareholders belonging to the two companies, and by employees.
The company will keep its current activities in water and solid waste in France and in certain geographical areas of the world.
On the union side, the CGT de Suez expressed its disagreement with this merger and said it felt betrayed by the company's board of directors.
Political turn
The two French flagships have been clashing since last year, since
Veolia announced its intention to buy Suez
.
The affair even took a political turn that forced the government to intervene on several occasions with the two rivals in order to help reach an agreement.
The final agreement must be signed by May 14, 2021. The Minister of the Economy, Bruno Le Maire, welcomes a “
amicable agreement
” which “
preserves employment
”.
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To read also: Veolia wants to swallow Suez: a Franco-French battle for the world market
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