France’s Veolia reached a $15.5 billion deal to acquire Suez, creating a water and waste-management giant that aims to soak up a global surge in infrastructure and climate-change spending, reported The Wall Street Journal.
The companies turned the page on months of acrimony and legal battles Monday, April 12, striking a preliminary agreement for Veolia to purchase Suez shares for €20.50 apiece, compared with an initial offer of €15.50. The combined entity would generate annual revenue of €37 billion, equivalent to US$44 billion, across five continents.
The deal comes at a time when governments world-wide are boosting spending on infrastructure as part of efforts to recover from the pandemic and overhaul their economies to meet commitments under the Paris climate accord.
President Biden this month unveiled a US$1.52 trillion budget outline focused on climate change and infrastructure. The European Union in July last year agreed on a €750 billion recovery fund designed to spark an industrial transformation centered on a European Green Deal.
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