To get the green light from the European Commission, which watches over competition in the European Union, Veolia, world number one in its businesses, had to commit, as planned, to notably sell most of Suez's activities in France.

The closing of the public takeover bid (OPA) will take place on January 7, 2022, the Autorité des marchés financiers (AMF) in Paris said.

It should actually be completed on January 18 and will allow the group to take over around 60% of its competitor's activities.

The rest of the assets, by virtue of a "cease-fire" agreement reached this spring between the two enemy brothers, will in the process be ceded to a consortium of shareholders, to create a "new Suez", independent, although diminished.

The Brussels endorsement was the only condition precedent included in Veolia's takeover bid.

To win, the former Générale des Eaux will have to sell "almost all" of Suez's activities in waste management and municipal water in France, confirms the Commission.

It is this sale which should give rise to the creation of the new Suez group, refocused mainly on water and on France.

It will have around 40,000 employees for nearly 7 billion euros in turnover.

It will also keep assets, particularly in Africa (Morocco, Senegal), India, China, Poland.

Held by a consortium made up of the French Meridiam and American funds GIP, at 39% each, alongside the Caisse des Dépôts / CNP Assurances, it will be withdrawn from the Paris Stock Exchange.

New disposals

But the Commission has also asked Veolia for new commitments: the sale of "almost all" of its activities in mobile water services in the European Economic Area, "the vast majority" of Veolia's activities in industrial water in France and "part" of the activities of the two companies in the treatment of hazardous waste, said the European executive on Tuesday, after several months of discussions with the parties.

"The group has agreed to some additional remedies," confirms Veolia in a press release.

These new transfers requested "represent a turnover of 325 million euros", or "in the end less than 1% of the turnover of Veolia", tempered the CEO of Veolia Antoine Frérot in an interview with Les Echos.

Veolia CEO Antoine Frérot in Paris, August 27, 2020 ERIC PIERMONT AFP / Archives

On the other hand, the group will absorb a large part of Suez's international activities: its turnover will increase by 50% in North America, will double in Latin America, will be "significantly" increased in the United Kingdom and Spain.

It will see its workforce increase from 180,000 to 230,000 employees and its turnover from 27 to 37 billion euros.

It will thus consolidate its position as world number one in the sector, even if it will still represent only around 5%, in a fragmented world landscape.

- "A matter of weeks" -

Veolia, which currently holds 29.9% of the capital of Suez (acquired in October 2020 from the French energy company Engie), launched on July 29, 2021 a takeover bid for the remaining 70.1%.

Suez fought for a long time to avoid this outcome.

But, after eight months of a financial, political, judicial and media standoff between the two rival groups for 150 years, he had to resolve to buyout, in April 2021, after mediation.

The acquisition price was then raised to 20.50 euros per share, valuing the target at some 13 billion euros.

With the green light from Brussels, Veolia has already obtained the approval of 15 competition authorities out of the 18 seizures of the case.

The group is still awaiting authorization from authorities in the United Kingdom, Chile and Australia, but only the decision of the European Commission was likely to block the takeover.

"This step opens the last phase of the merger which is only a matter of a few weeks," Antoine Frérot reacted on Tuesday.

"I want it to be done in the best conditions for all of our stakeholders, and I will ensure that all of our social commitments are respected throughout this process," he said. he adds.

Antoine Frérot's group, which made an acquisition there already attempted in 2006 and 2012, has promised to maintain employment for four years.

The consortium at the head of the "new Suez" has committed itself over five years.

© 2021 AFP