Now it is Suez's turn to put pressure on: the group has signed an agreement to sell its waste business in this country to the Australian Cleanaway, an asset that Veolia considers
“strategic”
for its takeover bid on its rival.
Read also: Suez and Veolia still at loggerheads
The achievement of this agreement will depend on the
"result of the negotiations"
on the terms of Veolia's takeover bid for Suez, however the latter specifies in a press release published overnight from Monday to Tuesday.
The two French flagships of the water and waste sector have been clashing since Veolia acquired 29.9% of Suez from Engie in October before launching a takeover bid on the rest of the shares.
For seven months, they have been taking legal action, invective through the press, pressure blows and warning signs.
The agreement with Cleanaway comes within the framework of a strategic sale-acquisition plan launched by Suez to refocus on certain activities.
But Veolia can still take control of these assets,
"in particular on the basis of the proposal"
made to it by Suez on the terms of its takeover bid, Suez said on Tuesday.
"We have renegotiated (with Cleanaway) so that Veolia can take control of this asset,"
Philippe Varin, president of Suez, told the press on Tuesday.
“We continue to wish for a friendly and negotiated solution”
with Veolia, by April 20.
But for Veolia, this potential sale
"constitutes an additional obstacle"
to the recovery of its rival.
"Suez still seems to want to do everything to make it impossible to reach an agreement with Veolia,"
lamented the latter in a statement Tuesday evening.
Veolia proposes to maintain a Suez France of which it would transfer all national assets to the Méridiam fund, but Suez, supported by the Ardian and GIP funds, also wishes to keep the “Water and Technology” activities internationally.
Suez also underlines that its valuation goes well beyond the 18 euros per share proposed by Veolia in its takeover bid, as shown by the amount reached by its Australian assets: 2.52 billion Australian dollars (1.63 billion euros ), i.e. 12 times the company's 2020 gross operating surplus.
Call to order from the AMF
Veolia, which actually filed its takeover bid on February 8, returned to the charge on Monday.
The group ordered Suez to
"deactivate"
a foundation intended to block the sale of its Water assets, while calling for
"dialogue"
, taking advantage of a call to order issued shortly before by the Autorité des marchés financiers financial (AMF).
The gendarme of the Stock Exchange estimated Friday that the means employed by Suez to counter the appetite of Veolia
“undermined”
several principles of operation of the markets, including the obligation of transparency and loyalty in the transactions.
But for Suez, this position of the AMF is
"incomprehensible"
, said Philippe Varin.
"It is contrary to the Florange law, it is even a historical precedent: it means that any French operator under the influence of a takeover bid could no longer take measures to defend itself against it!"
, he added, saying he was
"ready to appeal"
against the position of the AMF.
“From the start, the AMF has systematically taken sides in favor of Veolia,”
according to Guillaume Thivolle, president of the Association of employee shareholders of Suez (5.6% of the capital).
First
"by accepting the entry into the capital of Suez without constraints, by accepting the renunciation of the friendliness of Veolia and, today, by renouncing the possibility for Suez shareholders to benefit from a better valuation"
.
When Veolia touts the construction of
“a great world champion”
in the sector, Suez highlights the need for
“agility”
of companies and its own strategic development plan for 2030. The two enemies were to meet on Tuesday for a hearing before the Nanterre Commercial Court: Veolia has filed an appeal against the sale of Suez's strategic activities, accusing its management of wanting to dismember the group.
But the hearing has been postponed to a date yet to be determined, according to both parties and the court.
Ultimately, for lack of agreement on the terms of the takeover bid, it should be up to Suez shareholders to arbitrate the duel at the next general meeting, expected by the end of June.
