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Takeover bid from Veolia on Suez: "This offer is not friendly", criticizes Bruno Le Maire

2021-02-08T08:46:19.034Z


The Minister of the Economy will seize the gendarme of the Stock Exchange while the commercial court of Nanterre has ordered Veolia to suspend the


Bruno Le Maire, the Minister of the Economy had tried to oppose a battle between the two French giants of the environment.

In vain!

For nearly five months, the soap opera opposing the two French water giants Veolia and Suez has turned into a trench warfare while initially this rapprochement was to take place in a "friendly" form.

After recovering its voting rights on the 29.9% of Suez sold by Engie in 2020, Veolia announced on Sunday evening to file a purchase offer on the 70.1% of the capital of Suez that it does not hold. .

A transaction of 7.9 billion euros, or 18 euros per share.

Immediately, Suez replied by estimating the filing of this takeover bid would be “irregular and illegal” and seized the Nanterre commercial court for summary proceedings to order the suspension of the launch of any takeover bid pending a substantive debate on its previous friendly commitments.

Suez won.

The court ordered, this Monday morning, to Veolia "not to make the Autorité des Marchés Financiers recipient of a public offer or to initiate a public offer on Suez securities not previously approved by the board administration of Suez, ”says the decision.

In the process, Suez denounced in a press release published Monday morning, "a hostile approach by Veolia and the submission of an illegal offer", contrary to the commitments made by the latter.

The group also deplores the "contempt for the state which tries to promote a friendly solution".

Except that friendship between the two groups, there is no more.

The board of directors of Veolia accuses its competitor of having "multiplied the actions intended to obstruct its proposal" for a friendly takeover.

Veolia also wants to act quickly when two funds could offer another offer that would be favored by Suez.

Bruno Le Maire will seize the gendarme of the Stock Exchange

According to Veolia, its offer is “accompanied by all the guarantees publicly presented for several months, foremost among which is the maintenance of employment and social benefits on French soil.

"

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More technical, Veolia also modified "its declaration of intent of October 5, 2020 by no longer requiring that the offer be submitted to the favorable reception of the Board of Directors of Suez".

Unlike a first version where in principle the board of directors of Suez had "one month to issue a recommendation on this offer" and launch the consultation of employee representative bodies.

Bruno Le Maire will seize the gendarme of the Stock Exchange.

“This offer is not friendly and it contravenes the commitments that have been made on several occasions by Veolia.

It also raises questions of transparency.

Why was this offer suddenly made?

So we are going to refer the matter to the Autorité des marchés financiers this morning, ”he said on Europe 1.

Battle between Véolia and Suez, @BrunoLeMaire: "This operation can only succeed if it is friendly. This offer is not and raises questions of transparency. We are going to refer the matter to the Autorité des marchés financiers." # Europe1 pic. twitter.com/zC0VGYVGze

- Europe 1 🎧🌍📻 (@ Europe1) February 8, 2021

Already, the inter-union of Suez (CGT, FO, CFDT, CFTC, CFE-CGC) sided with its management: "We will not let Veolia do its destruction" by denouncing a "hostile takeover against Suez and its employees ”, synonymous with“ declaration of war without return.

"

But the file is far from complete.

To go further, Veolia will have to obtain the authorizations of the competition authorities to move forward.

Suffice to say that Veolia may not be able to finalize this merger as it wishes in the first quarter of 2022.

Source: leparis

All business articles on 2021-02-08

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