The water and waste giant Veolia has managed to absorb its old rival Suez, in which it has held more than 86% of the capital since Friday evening, following a takeover bid and several months of battle.
The group announced that it will ask for a reopening of the offer, from January 12 to 27, for late sellers. Beyond 90% of shares, he can then proceed to a “squeeze-out” to recover the last shares and reach 100%.
This rate of 86.22% is “high, and very satisfactory”, welcomed Friday evening the financial director of Veolia, Claude Laruelle, during a press briefing.
Suez shareholders had until Friday to bring their shares to Veolia, and analysts believe the outcome was not in doubt, given the price offered.
The offer was set at 20.50 euros per share, 19.85 euros with the withdrawal of the dividend paid.
Veolia should settle it and take possession of the enemy brother on January 18. By virtue of an agreement reached with Suez in the spring, some 40% of the assets will however be transferred by the end of January to a consortium of new buyers, responsible for maintaining and developing an independent “new Suez”.
All operations should be completed during the second half of February, and Suez then withdrawn from the rating, says one at Veolia.
– Anti-trust –
The world number one in the sector already held 29.9% of the capital of Suez, acquired in October 2020 from the energy company Engie (ex-GDF Suez).
In mid-December, the European competition authority had given its approval to the repurchase of the rest of the shares, the only condition precedent of the takeover bid.
Suez management did not issue a reaction on Friday.
The former Lyonnaise des Eaux fought for a long time to avoid this takeover. But, following eight months of a spectacular financial, political, judicial and media showdown, and for lack of having found an alternative investor, he had to resolve himself last April, following a mediation conducted by his former boss. .
This 13 billion euro transaction will enable Veolia to go from 180,000 to 230,000 employees, with a turnover of 37 billion euros, or 10 billion additional.
It will consolidate its number one position, while representing only around 5% of the sector, in a fragmented global landscape. Water, waste, energy management, air quality … the group, now present in some forty countries, strengthened in particular in the United States, Spain, Latin America, wants to be the “champion” capable of responding to the challenges of ecological transition.
However, he will have to sell some 300 million euros of assets, in water and industrial waste, to meet the demands of the Brussels anti-trust, and he has six months to do so. Veolia will also have to go through an “in-depth investigation” by the British competition authority, if it wants to be able to buy Suez assets in the United Kingdom (representing 2% of its activity).
Its management should in any case be able to publish forecasts when its next results are presented on March 17, we are assured.
For its part, reduced and refocused on its historical activity, water, Suez will increase to 40,000 employees, and nearly 7 billion euros of activity.
The company will keep most of its assets – both water and waste – in France, which Veolia would have had difficulty in keeping due to anti-trust laws. It also maintains a few positions, particularly in China, Africa and Europe, in order to be able to project internationally.
This “new Suez” will be 39% owned by the French fund Meridiam, 39% by the American GIP, with Caisse des Dépôts / CNP Assurances. The first is committed for at least 25 years, the others ten years.
A general manager, Sabrina Soussan, has been appointed, a strategy remains to be announced.
The consortium promised to maintain employment for at least five years, Veolia four years.
