Paris (AFP)

Veolia and Suez announced Monday that they had reached an agreement for a merger, putting an end to several months of financial, media and legal battle between these two French groups present in water and waste.

The two companies finally agreed on a price of 20.50 euros per Suez share, while Veolia initially offered 18 euros, an amount deemed insufficient by its rival who demanded 22.50 euros per share.

The price finally adopted values ​​the whole of Suez at around 13 billion euros.

This merger should allow the constitution of a "world champion of ecological transformation" in an increasingly supported and competitive market, with turnover of around 37 billion euros, according to a statement from Veolia.

At the same time, a "new Suez" must be set up, owned by a group of predominantly French shareholders comprising financial partners from both groups and employees.

Its scope will include Suez's current activities in municipal water and solid waste in France, as well as other activities of the company "particularly in water" and in several geographical areas including Italy, Africa. , India, China and Australia.

The two French flagships have been clashing since last year, especially since the acquisition by Veolia in October of 29.9% of Suez from Engie before launching a takeover bid on the rest of the shares.

For seven months, they have multiplied legal action, invective through the press, pressure blows and warning signs.

At the same time, everyone regularly showed their willingness to reach out to their rival, but on their own terms, giving the impression of a dialogue of the deaf.

The affair had also taken a political turn, the Minister of the Economy Bruno Le Maire intervening on several occasions, and again at the end of March, to estimate that an agreement remained "possible" between the two rivals.

The tension had risen a further notch when Suez had announced last week to have signed an agreement to sell to the Australian Cleanaway its activity "recycling and recovery" in this country, which Veolia considered as "strategic".

The agreement announced Monday also provides for the deactivation of the Dutch foundation planned by Suez, created to oversee its Eau France assets and prevent their sale.

Veolia had again asked him to give it up at the beginning of April.

© 2021 AFP