Veolia and Suez sign combination deal

The signing of the combination agreement was
announced as anticipated on 14 May.
14.05.2021 − 

Veolia and Suez have entered a combination agreement, confirming the terms of the preliminary deal the two environmental services giants struck in April including the acquisition price of €20.50 per Suez share. That agreement in principle has now been formalised and has received the approval of the boards of directors of both companies, Suez and Veolia said in a joint statement issued Friday night. 

The announcement came minutes after the markets closed in New York and had been expected before the end of the day. In the announcement of their April agreement, Suez and Veolia said they were aiming to enter into "definitive merger agreements" by May 14.

Along with their merger agreement, Veolia and Suez also announced the signing of a memorandum of understanding with the parties that are to acquire the "new Suez", consisting largely of activities that would have made it difficult for Veolia to secure anti-trust approval for the merger. Those activities will be acquired by a consortium composed of the investors Meridiam, Global Infrastructure Partners (GIP) and the Caisse des Dépôts Group including CNP Assurances. Meridiam and GIP would each have a stake of 40 per cent and CDC 20 per cent. Other parties interested in acquiring a holding in the "new Suez" include the German waste management company Remondis, which earlier in the week had extended an offer for up to 40 per cent of the new entity.

Suez and Veolia aim to close both the public tender offer for Suez and the sale of the "new Suez" to the investor consortium before the end of the year, subject to obtaining regulatory and competition approvals.

Additional coverage of the Suez / Veolia merger deal will appear in EUWID Recycling & Waste Management 10/2021, which appears on 19 May.

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