Veolia Environnement offered 2.9 billion euros ($3.5 billion) for a 29.9% stake in French rival Suez, reviving an eight-year-old attempt to create a world leader in waste and water services, reported Bloomberg.
Veolia offered to acquire the stake from energy giant Engie SA for 15.50 euros a share in cash, 27% more than where the target closed Friday, Veolia said in a statement Sunday. Suez said its board will meet “shortly” to consider the unsolicited bid. If the offer is successful, Veolia will make an offer for the rest, using the price paid to Engie as a reference point, and taking into account any subsequent significant events affecting Suez.
The transaction, a full bid would value Suez stock at 9.7 billion euros, would create a company with combined revenue of more than 40 billion euros with plants treating everything from water to plastic and hazardous waste across the globe. It comes as utilities try to revive earnings dented by the coronavirus pandemic, and as governments push to spend more on environmental services in their economic stimulus packages.
Full Content: Bloomberg, Reuters
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