The French water and waste treatment company Veolia has rejected the proposal of its rival Suez, in which it controls 29.9% of the share capital and on which it has launched a takeover bid to acquire 100%, to unblock the conflict which faces them by selling a large part of the second’s assets to a consortium led by Ardian and Global Infrastructure Partners (GIP).

“Suez management has tried in vain to create uncertainty where it does not exist: Veolia will not sell or exchange its 29.9% stake in Suez’s capital. The public offer presented by Veolia remains irrevocable,” the multinational said in response. to the consortium’s proposal, favorably received by the Suez management.

This offer, raised this Sunday in response to an invitation from Suez, contemplates the acquisition for 11.9 billion euros of various assets of the French company, including all water activities in France, as well as recycling and recovery of waste, in addition to various activities at the international level, which would become part of a new society.

In this sense, the French company pointed out that the consortium’s proposal is equivalent to a value of 20 euros per share, above the 18 euros of Veolia’s takeover bid.

“The proposal made by the Ardian-GIP consortium has been unanimously approved by Suez’s board of directors, which finds it respectful of the group’s stakeholders, its shareholders, its clients and its employees,” Suez said in a statement. .

“Suez’s board of directors has confirmed its willingness to find a negotiated solution with Veolia that is in the interest of its employees, customers and shareholders. We now have a solution, backed by a new proposal from Ardian-GIP, that would allow both companies conclude an agreement in the interest of all stakeholders, and that also meets the objectives set by the French State, “said Philippe Varin, president of the Suez council.

However, Veolia has pointed out “an obvious conflict of interest in the Suez press release”, considering “surprising and shocking” the approach taken by Suez management in offering the company’s assets to two funds in a manner ” clearly contrary to the corporate interest of the group and its shareholders “.

Veolia, Suez’s main shareholder after buying 29.9% of the company held by Engie last autumn at a price of 18 euros per share, announced last February a purchase offer for the company’s capital that will not controls at the same price paid in October, which would value Suez at around 11.3 billion euros, but which has been rejected by Suez on the grounds that it does not adequately value the company and would entail its dismantling.

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