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Veolia and Suez: a possible merger

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
Veolia wants to take the world by storm

The week started with a possible deal on French territory between two important utility companies: Veolia and Engie's subsidiary, Suez. 

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%. 

Read more about other mergers and acquisitions on CAPEX.com!

Sources: marketwatch.com, ft.com, finance.yahoo.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.