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Veolia + Suez

Build a champion of ecological transformation: our vision

The announcement

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

READ VEOLIA'S PRESS RELEASE

key dates

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 transformation

Read 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 today

Read 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.

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Veolia welcomes the conclusions of the Board of Directors held by Engie and confirms that it welcomes Engie's requests:

  • extension of the validity of the offer presented today to Engie until Monday October 5, 2020;
  • formalization, by that date, of the terms of its commitment not to launch a hostile takeover bid on Suez shares.
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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.

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Veolia acquires 29.9% of Suez’s capital from Engie and confirms its intention to acquire control

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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 groups

Read 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 SUEZ

Read the press release
The environmental urgency is stronger than ever, given the state of natural resources and climate change. The growing pressure of public opinion, the European Green Deal and the stimulus packages that are being announced in many countries make ecological ambition a necessity. This project will enable us to complement the solutions we provide to public and private actors in order to give them the means to sustainably reduce their environmental impact. This historic opportunity will enable us to build the French world champion in ecological transformation, while accelerating international development and strengthening the new entity's capacity for innovation. This project is part of a friendly approach, as we share the same businesses, corporate culture and values with Suez.

Antoine Frérot, Chairman and CEO of Veolia

An announcement greeted by the press

“Un mariage dont on parle depuis 10 ans et qui unirait deux entreprises dont les activités remontent au Second Empire.”
Article from August 31, 2020 by Jean-Michel Bezat
“Le mariage de ces deux poids lourds français des services aux collectivités locales donnera naissance à un champion mondial dans la gestion de l’eau, des déchets et de l’énergie.”
Article from August 30, 2020 by David Barroux
“La logique stratégique d’une union entre Véolia et Suez est très forte et créerait un leader mondial incontesté des services environnementaux à un moment où la transformation écologiques s’accélère.”
From the Reuters report of August 30, 2020
“By combining the very solid skills of Suez and Veolia, this transaction would be able to significantly accelerate the development of the new entity in the face of growing comptetition, and would enable the industry inf France, Europe and the world to meet the environmental challenges of the 21st century.”
From the Reuters report of August 30, 2020

An offer favourably received by the stock exchange

CNBC

Market reaction shows bid for Suez makes sense, Veolia COO says

Estelle Brachlianoff

The project

An industrial company, unique in its field

Maximizing our impact for the planet, our employees and customers

The project we are putting together, with our proposal to build an industrial company with Suez that is unique in its field, is a natural next step in our strategic program Impact 2023.By pooling our resources, we will bring together, within the same company, all the solutions necessary for our customers to successfully complete their ecological transformation,we will have the benefit of the perfectly complementary nature of our respective geographical footprints, and we will combine our research and innovation investments rather than duplicating them. To sum up, we will ensure that the positive impact we have for allour stakeholders is maximized and we will build the Group of tomorrow for the world of tomorrow.

Antoine Frérot, Chairman and CEO of Veolia

Synergies

Pooling expertise, values and technologies

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.

The merger with Suez will enable Veolia to verify whether Gasification is a solution that lives up to its promises to meet the challenge of waste recovery
The merger would give Veolia the resources to carry out the evaluation and testing of carbon capture on an industrial scale, thanks to an industrial demonstration pilot
The merger project will make it possible to develop biomethanization solution for wastewater and waste to reduce the co2 impact of landfills
As French champions in alternatives energies, the merger of the two groups will accelerate the development of low-carbon collection methods
In France, the merger will accelerate the development of pet plastic recycling
In Germany, the merger will consolidate and accelerate our vertical growth in sorting, recycling and recovery of packaging to produce recycled plastics and solid recycled fuel (SRF)
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Our ambition

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

To meet the challenges of ecological transformation

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.

What is the European Green Deal?

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

Seize business opportunities related to the magnitude of environmental issues

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.

Évolution des collaborateurs Veolia-Suez

Consolidating our expertise and our offers

Create an integrated offer that can be deployed on a large scale

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.

“Veolia & Suez coming together, for me that's really a wonderful tool, a perfect combination, in order to build THE industrial player of the ecological transformation.”

Estelle Brachlianoff, Veolia COO

An integrated offer for our customers

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.

Increased deployment capacity

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, inventing tomorrow's services

“To offer employees and shareholders alike an exciting project in the world competition, you must not see small, you must see big. Not to be big, but to be strong.”

Antoine Frérot, Chairman and CEO of Veolia

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.

“Together we would be considerably stronger. Adding the capacities of Veolia and Suez on a continental scale means being able to offer our customers an improved reliability and competitiveness.”

Jean-François Nogrette, SVP Veolia Technologies & Contracting

“There is no planet B, that's why we are taking action, trying to bring together all talents, to act while it is still time.”

Olivier Brousse, EVP Strategy & Innovation

Creating a European College of Ecological Transformation

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

Building a development and acceleration project

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.

Committed and enthusiastic employees

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.

Aligned strategies

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.

Veolia's strategic plan: Impact 2023
Suez's strategic plan: Shaping Suez 2030

Ambition

To be the benchmark company for ecological transformation

To be the leader in environmental services in 2030

International

Acceleration of growth outside Europe

Growth of international activities (from 38% to 60% of revenue)

Activities

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)

Performance

"Best in class" operational efficiency plan (savings of €1 billion in 2023)

Profitability growth (€1 billion savings between now and 2023)

A multifaceted performance

Creating value for all our stakeholders

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.

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For employees

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.

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For society

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.

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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.

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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.

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For shareholders

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.

In a few words

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.

Sum-up of the Veolia-Suez merger

Veolia + Suez, our employees talk about it best!

Project to bring Veolia and Suez together