Veolia and SUEZ have signed a Combination Agreement, confirming the terms of the agreement in principle to merge concluded on 11 April, following approval by their respective Boards of Directors.
This agreement enables Veolia to acquire the strategic assets needed to pursue its goal of building a ‘global champion in ecological transformation’, while guaranteeing a ‘coherent and sustainable industrial and social footprint’ for the new SUEZ.
The companies said the agreement reiterates the social commitments made by Veolia and confirms that the acquisition price per share of the SUEZ Group will be raised to €20.50.
This revised Veolia offer would be recommended by the SUEZ Board of Directors before 29 June.
A Memorandum of Understanding has also been signed between SUEZ, Veolia, and the Consortium of investors composed of Meridiam–GIP–CDC/CNP with a view to creating a new SUEZ with revenues of nearly €7 billion, comprising SUEZ’ Water and Recycling & Recovery businesses in France as well as international assets, and growth prospects and development capacities both internationally and in France.
This agreement represents a giant step forward for Veolia, for the French approach to ecological transformation, and for the preservation of the environment.
Antoine Frérot, Chairman and CEO of Veolia, said: “This agreement represents a giant step forward for Veolia, for the French approach to ecological transformation, and for the preservation of the environment.
“I am very happy to welcome the SUEZ teams to be soon part of our project to build the world champion of ecological transformation, and very satisfied that we will also be able to assure the sound, stable, and sustainable development of the new SUEZ: as I promised, this is a “win-win” agreement”.
Philippe Varin, Chairman of the Board of Directors of SUEZ, said: “The agreement between our two groups maintains France’s leading position in essential environmental services. The new SUEZ will be able to draw on its technological and industrial know-how to develop in the water and waste businesses, with the support of a robust Consortium.
“Veolia will benefit from the support of the teams joining from SUEZ and will hence pursue its project”.
Bertrand Camus, CEO of SUEZ, said: “With this agreement, the New SUEZ will benefit from a robust industrial and technological foundation. Supported by a stable shareholder base with significant employee shareholding, the future Group will be in a strong position to drive international development, with solid investment capacity to ensure the best quality of service for our customers.
“This agreement is the recognition of the quality of all SUEZ teams, which I want to thank for their commitment and which will make it last within Veolia or within the future Group”.