In particular,
Veolia has had to commit to assigning the essence of Suez’s activities in France to obtain European authorization.
Le Monde with AFP
The European Commission authorized, Tuesday, December 14, the merger of the two French multinationals of water and waste Veolia and Suez – an operation at 13 billion euros sealed in the spring after months of battle between the two rivals historical. This decision of the Commission, which ensures competition in the European Union (EU), paves the way for the conclusion of a VEOLIA’s OPA purchasing offer on SUEZ in the coming weeks.
To obtain this authorization, Veolia had to commit to yielding the essentials of Suez’s activities in France. In detail, the Group will have to sell “almost all” of the activities of SUEZ in the management of waste and municipal water in France, “almost all” of Veolia’s activities in the mobile services of the Water in the European Economic Area, “the vast majority” activities of Veolia in the management of industrial water in France and “a part” of the activities of the two companies in the treatment of hazardous waste, said the executive European in a statement.
The agreement of the Commission “is subject to full compliance” of these commitments which “completely eliminate the issues of competition raised,” said the institution. The operation, which had been notified in Brussels on October 22, aims to make Veolia “a World Champion of Ecological Transformation”, strengthened in its capacity for innovation in the face of Chinese competition. Veolia will therefore absorb a large part of the activities of Suez abroad: United States, Latin America, Spain, Australia, United Kingdom. It will see its numbers from 180,000 to 230,000 employees, and its turnover from 26 to 37 billion euros.
Eight months of iron arms
Out of the perimeter of the merger, the new SUEZ group, reduced to 40% of the current group and refocused mainly on the water and on France, will have about 40,000 employees for nearly 7 billion euros of figure. ‘business. Held by a consortium composed of French investment funds Meridiam and American Global Infrastructure Partners (GIP) alongside the Caisse des Dépôts and CNP Assurances, it will be withdrawn from the scholarship.
Veolia, which currently holds 29.9% of the capital of Suez (acquired in October 2020 from the French Energetician ENGIE), had launched at the end of July an OPA on the remaining 70.1%. Suez has a long time fighting to avoid this initially hostile redemption. But after eight months of a financial, political, judicial and media arm between the two rivals groups for one hundred and fifty years, he had finally accepted the redemption in April, after a mediation. The acquisition price was noted at 20.50 euros per share, valuing the target for about 13 billion euros.