Veolia + Suez
Veolia and SUEZ have signed a Combination Agreement
between themselves and a Memorandum of Understanding with Meridiam–GIP–Caisse des Dépôts/CNP Assurances for the acquisition of the new SUEZ
July 31, 2020,
the group Engie announces a strategic review of its assets and puts its stake in Suez’ capital up for sale.
August 30, 2020,
Veolia offers to acquire 29.9% of Suez from Engie, to create the French world champion of ecological transformationRead the press release
September 30, 2020,
Veolia confirms its project to create the world leader in the ecological transformation. Taking into consideration both the French State and Engie’s concerns, Veolia hasdecided to improve all the characteristics of its offer in order to present the best possible offer for the vote of the Board of Directors of Engie todayRead the press release
ENGIE’s Board of Directors welcomes the improved offer from VEOLIA, considering that this new offer is in line with its expectations in terms of price and social guarantees. The Board also decided to request that VEOLIA extends the validity period of its new offer until 5 October 2020 in order that VEOLIA formalizes its unconditional commitment not to launch a public tender offer which wouldn’t be friendly.Read the press release
Veolia welcomes the conclusions of the Board of Directors held by Engie and confirms that it welcomes Engie's requests:
Engie’s Board of Directors acknowledges the extension of the validity period of VEOLIA’s offer until 5 October 2020 and welcomes this opportunity of bringing together VEOLIA and SUEZ.Read the press release
October 5, 2020,
Engie’s Board of Directors accepts VEOLIA’s offer to purchase its stake in SUEZ.Read the press release
Veolia acquires 29.9% of Suez’s capital from Engie and confirms its intention to acquire controlRead the press release
February 7, 2021,
Veolia announces the filing of a tender offer for the entire share capital of Suez in order to complete the merger between the two groupsRead the press release
April 12, 2021,
Veolia and Suez announce that they have reached an agreement allowing the merger of the two companies.
May 14, 2021,
Veolia and SUEZ have signed a Combination Agreement between themselves and a Memorandum of Understanding with Meridiam–GIP–Caisse des Dépôts/CNP Assurances for the acquisition of the new SUEZRead the press release
Market reaction shows bid for Suez makes sense, Veolia COO says
An industrial company, unique in its field
Veolia and Suez have forged groups with similar know-how, the same passion for the job and common values, first and foremost among which are respect for the customer and customer service.
We want this merger to be mutually enriching for all our employees.
“In order to offer employees and shareholders an exciting project in the global competition, we have to think big. It’s not about getting bigger, but about getting stronger.” - Antoine Frérot, CEO & Chairman of Veolia @LesEchos https://t.co/nkLaWTCcNs— Veolia (@Veolia) September 14, 2020
Thread Veolia-@suez 👇
The intention to bring Veolia and Suez together is perfectly in line with our Purpose andour Impact 2023 program: it opens up the possibility to create a worldwide player capableof meeting the challenges of ecological transformation, while maximizing our impactfor all our stakeholders. This development will also enable us to seize the huge potentialoffered by environmental markets.
Building the group of tomorrow
We are currently seeing a rapid increase in the collective awareness of environmental issues, which is forcing governments, businesses and individuals to take action. The national Covid-19 recovery plans, which prominently feature environmental protections, and the ambitious European Green Deal , form a particularly promising backdrop for our businesses. In order to respond to this basic trend in a Meaningful and committed way, it is essential for us to move forward together.
In creating the world champion of ecological transformation with Suez we would become the first company in the world to be able to offer all the solutions necessary to meet the great challenges of our time: the climate change emergency, the increasing scarcity of resources and the challenges of urbanization and digitization.
The European Green Deal is a plan to make the economy of the European Union sustainable, particularly by reducing greenhouse gas emissions, promoting the circular economy and protectingbiodiversity. The deal is combined with a Just Transition Mechanism representing hundreds of billions of euros of potential investments to support ecological transition projects.
Positioning oneself on a market undergoingwholesale structural changes
While the global market is still fragmented, it will quickly become structured due to the commercial opportunities associated with the urgency and scope of the environmental challenges. This will certainly lead to the emergence of new foreign competitors. Together, our two companies could potentially generate revenues of €37 billion, increasing our worldwide market share from 3% to 5%.
To meet environmental challenges, it is imperative that we join forces. The combination of Veolia and Suez would create the first company in the world to offer all the solutions needed for ecological transformation.
Consolidating our expertise and our offers
Veolia and Suez are already close in terms of their nationality and their know-how and provide their customers with complementary solutions. United under a single brand, they will constitute an integrated offer, capable of being deployed on a large scale anywhere in the world.
Treatment and distribution of water, collection and recycling of waste (and particularly hazardous and toxic waste), recycling of plastics, decontamination of soil, air quality, optimization of energy consumption, etc.: together, the skills of Veolia and Suez constitute a very broad range of solutions.
They also complement each other in lucrative strategic segments: for example, being together would enable us to strengthen our capacities in terms of the recycling of certain plastics such as LDPE (low-density polyethylene), or PET (polyethylene terephthalate) in France. At a time when local authorities and industries are looking to make their activities cleaner and more efficient, the newgroup would offer these customers the many capabilities necessary for ecological transformation.
Veolia’s proposal is not driven by an appetite for capital links, but by the opportunity to invest to continue to forge ahead in our markets. The new group will be able to consolidate our solutions and technologies and deploy them on a massive scale, while increasing our investment capacities to respond to the most demanding requirements and also allowing our customers to benefit from increased synergies.
In this respect, the digitization of our businesses is a good example: size is a great asset not only in taking on the initial investments, but also in making the most of the data.
Increasing our innovative capacities
Offering innovative technologies and inventing the services of the future: innovation provides major competitive leverage but also requires a company to invest, to maintain its collective intelligence and to share best practices.
There is an ecological emergency. Only half of the technological solutions that will be used in 20 years have been invented. They have yet to be generalized and, above all, the missing half has to be invented.
The offer includes the setting up of an unprecedented professional training center capable of providing the teaching necessary for the jobs of tomorrow while contributing to our intellectual andindustrial standing.
Building on Veolia Campus’ long history of environmental training, this “EuropeanCollege of Ecological Transformation” will be based in France and could produce some 500 graduate students every year, promoting access to employment for unqualified young people, in particular.
Combining our convergent strengths
The cultures, values, businesses and know-how of our two companies, and the ambitions of their ongoing strategic plans, make them more compatible than ever and ideally suited for a successful integration.
Veolia and Suez both have long industrial histories that have forged groups with similar know-how, the same passion for the job and common values, first and foremost among which are respect for the customer and customer service.
The synergies that we will find will not be merely operational, we also want them to be mutually enriching for all our employees.
This is a development and acceleration project. From the outset, we will all have a valuable role to play in responding to the challenges and everyone will have their place in the new group, including at the level of top management. Eventually, it will even create new jobs and new businesses.
Impact 2023 in the case of Veolia, Shaping 2030 for Suez; the two groups’ missions and strategic plans are convergent and focus equally on international markets with strong growth and innovation potential.
To be the benchmark company for ecological transformation
To be the leader in environmental services in 2030
Acceleration of growth outside Europe
Growth of international activities (from 38% to 60% of revenue)
Focus on activities with high added value and continuing rebalancing of industrial/local authority customers
Increasing the proportion of industrial customers (from 40% to more than 50% of revenue)
"Best in class" operational efficiency plan (savings of €1 billion in 2023)
Profitability growth (€1 billion savings between now and 2023)
A multifaceted performance
In line with our strategic program Impact 2023, and our multifaceted performance commitments, bringing Veolia and Suez together aims to create not only economic and financial value, but also commercial, social, societal and environmental value. Thus, it will benefit all our stakeholders, both internal and external.
The new group, which will be larger, more innovative and more international, will offer exciting prospects and opportunities for all the talented people at Veolia and Suez who currently make the reputation of the two entities. We undertake that the transaction will not have any negative impact on employment in France.
The activities of our two companies, which are central to the concerns of both public and privatecustomers, are highly labor-intensive and provide essential services to the community. Theacceleration of our development will therefore have a positive impact on the regions where weare established.
For the planet
Bringing Veolia and Suez together will enable us to develop all the possible solutions to deal withpollution of any kind, including the most difficult, and to confront the increasing scarcity of raw materials.
For the clients
Both local authority and industrial customers will find the new entity to be a partner that can helpthem achieve their specific ecological transformation objectives even more quickly.
This transaction will create value for Veolia’s shareholders as early as the first year, in particular through operational and purchasing synergies estimated at €500 million, which have been taken into account in the price offered to Engie.
The intention to bring Veolia and Suez together is perfectly in line with our Purpose and our Impact 2023 program: it opens up the possibility to create a worldwide player capable of meeting the challenges of ecological transformation, while maximizing our impact for all our stakeholders. This development will also enable us to seize the huge potential offered by environmental markets.
Veolia + Suez, our employees talk about it best!
Project to bring Veolia and Suez together