The French water and energy group, Veolia, announced that it wants to buy 29.9% of Suez, its final purpose being to merge the two. The 29.9% eyed by Veolia is slightly below the required threshold for a full public offer. This offer came as a response to Engie's desire to no longer be a majority shareholder in Suez.
#Veolia made an offer of €15.50 per share, double than the closing price a Suez share had on Friday. The deal is valued at around €2.9 billion, and it is available until September 30. And, from Veolia's point of view, a full merger could be possible within the next 12-18 months, after the deal receives regulatory clearances. Upon joining, Veolia will secure the group's position in the rest of the world, as currently, both are market leaders in #Europe.
Despite Veolia's interest, Suez is considering this a takeover, given the fact that the approach of the first one "has not been solicited and has not been discussed at all with Suez," but it is evaluating the proposal.
Currently, Veolia stock price is #trading 6.62% higher, while Engie added 6.33%.
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Sources: marketwatch.com, ft.com, finance.yahoo.com