This is an important victory for Suez.
After several setbacks in its fight to avoid a takeover by its competitor Veolia, the company wins a round in the legal field.
Thursday March 4, the commercial court of Nanterre retracted its order of November 19.
The latter prevented Suez from perpetuating for four years the foundation under Dutch law created in September.
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The Suez board is finally studying Veolia's takeover bid ... and rejects it
The purpose of this foundation is to prevent any sale of Suez's water activities in France, even in the event of a change of control of the company or a modification of its board of directors.
However, the sale of this activity is fundamental in Veolia's project.
It will not be possible to keep the water activities in France of the two companies for reasons of competition.
Veolia has taken legal action to contest the existence of this foundation, but it will take months to complete.
Open discussion
The fact that Suez is regaining full use of its rights on this subject represents considerable inconvenience for Veolia.
The leaders of the former Lyonnaise des Eaux had not activated this foundation between September and November of last year.
They have no reason to do so immediately.
But they have the option of implementing it at any time.
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The CEO of Veolia puts pressure on the "board" of Suez
Since February 8, Veolia filed a draft takeover bid on Suez with the AMF, the leaders of the two groups assure that they want to discuss.
Except that the starting positions are so far apart that they still haven't engaged them.
This court decision, important for Suez, could perhaps encourage them to enter into negotiations.
