This time, the epilogue is near for the buyout operation of Suez by Veolia, this soap opera which has been running since the end of August 2020. Suez shareholders have until Friday, January 7 to bring their shares to Veolia, on the basis of of € 19.85 per share.
→ ANALYSIS. The international ambitions of the “new Suez”
The so-called operation “Settlement delivery”, finalizing the simultaneous transfer of title deeds for cash, was set for January 18. This is the key date, the day when Veolia will have its hands on its competitor for a century and a half. It will thus become the undisputed world number one in environmental services, with turnover rising from 27 to 37 billion euros, half of which in water, and 230,000 employees, ie 50,000 more.
Little suspense
Even if all Suez shareholders do not approve of the takeover bid, the group led by Antoine Frérot is almost guaranteed to win. For this, Veolia needs to have more than 50.1% of the capital of Suez. He already owns 29.9%, bought from Engie in October 2020.
→ LARGE FORMAT. Veolia – Suez: Antoine Frérot, the winner of the water battle
The only small uncertainty therefore concerns the threshold reached at the close of the offer. If Veolia’s stake in Suez is between 50.1% and 90% of the shares, the group has the option of extending the operation for a fortnight. If he has more than 90% of the capital, he can launch a squeeze-out offer in order to recover the last shares he does not have.
The Autorité des marchés financiers (AMF) will publish the final results of the takeover bid on Monday, January 11. But the first estimates could be communicated, from Friday 7, after the close of the Stock Exchange.
The new Suez will be on track at the end of January
Both parties are in a hurry to get it over with. The Suez group will indeed continue to exist, but with a business volume reduced by 60%. It retains most of its assets in France, in water and waste, i.e. around 5 billion euros in turnover, as well as 2 billion euros in international activities, in Europe, in Asia, Africa and Australia.
A small third of the workforce at the Suez headquarters in La Défense (Hauts-de-Seine), i.e. 300 people, will thus join that of Veolia in Aubervilliers (Seine-Saint-Denis).
The new group was bought for 10.3 billion euros, by a consortium made up of the French fund Meridiam (40%), the American fund GIP (40%), the Caisse des Dépôts (10%) and CNP Assurances ( 10%). The operation should be finalized at the end of January and the new director of Suez, Sabrina Soussan, will take up her duties immediately.
A government decree
Until then, the government must still authorize GIP to buy 40% of the group. Because according to the “Montebourg decree” of 2014 (named after the former minister), an acquisition of a stake of more than 25% by a foreign group in a company classified as strategic is subject to the approval of the State.
“We are rather worried, because GIP does not say anything about its intentions on the future strategy of Suez, in which it will remain moreover only a few years, emphasizes Franck Duval, the president of the Water Environment Framework Union (S3E). And the capital structure of the consortium will remain wobbly, because no one will be in the majority. “
→ PORTRAIT. Meridiam, an investment fund with a mission
The founding president of Meridiam, Thierry Déau, also initially wanted to take control of the new Suez, presenting himself as a long-term shareholder.
Suez could buy assets from Veolia
Veolia and Suez will therefore continue to be rivals, even if the first will be five times bigger than the second. The European competition authorities gave the green light to the operation in December 2021, but required Veolia to sell around 650 million euros in assets, as in France in hazardous waste and industrial water. . They could be taken over by Suez, which will have priority in an auction procedure.
Of the eighteen competition authorities consulted, only that of Great Britain decided to drag out the case, by launching an in-depth investigation. Together, the two groups achieve around 3 billion euros in sales across the Channel.
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