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Suez's blackmail to force Veolia to review its takeover bid

2021-04-01T18:55:26.881Z


Waste management in Australia, deemed strategic by Veolia, is at the heart of a liar poker game between the two groups.


This is called putting the pressure on.

Suez says it is about to sell its waste activities in Australia… except in the event of an agreement with Veolia.

For months, the Australian Cleanaway has offered Suez to buy back its activities in its country of origin (more than 1 billion euros in turnover).

The two groups reached an agreement around a price of around 1.63 billion euros.

Read also:

Suez and Veolia still at loggerheads

This project arouses the anger of Veolia, which filed a takeover bid for Suez in early February.

The group has listed a series of assets deemed strategic, including waste management in Australia.

Opposed to the proposed takeover bid presented by its rival, Suez indicates that

"the transfer agreement (to Cleanaway) would be terminated if, by the end of April-beginning of May, Suez reached an agreement on an operation including a public offer on Suez or in the event of a public offer at a price per share of 22.50 euros ”

.

Clearly, if Veolia comes to an agreement with the managers of Suez, there will be no sale in Australia.

On March 21, Philippe Varin, the president of Suez, revealed that the company could recommend supporting a takeover bid by Veolia on Suez, but by setting a number of conditions: first, a price revision from 18 to 20 euros per share;

then, a sale of assets representing 9 billion euros in turnover to Ardian / GIP funds, or more than half of the group's activity.

Veolia refused this offer.

But Suez had warned that in the absence of an agreement with Veolia, it would speed up its sales.

The threat from Suez is now stronger.

In the entourage of Veolia, one evokes a

"simple blackmail"

, stressing that

"nothing is done" with

regard to the sale of Australian assets.

The liar poker game continues.

Source: lefigaro

All business articles on 2021-04-01

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