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Veolia has agreed to acquire Engie’s 29.9% stake in waste and water company Suez, paving the way for a full takeover. The French group offered €18 per share, a premium of 75% over Suez’ July 30 closing price, or €3.4 billion (about $4 billion).
In a statement, Suez described the transaction as hostile and announced that it would use all the means at its disposal to avoid a “creeping takeover” or de facto control. Veolia said it intends to tender for the rest of the shares at €18 a piece but has committed to wait until it gets approval from Suez’ board.
Veolia first bid for the stake back in August, initially seeking to pay €15.50 per share, but Suez rejected the offer on the basis that it undervalued the business and did not guarantee employee protections. Suez had been pushing an offer from Ardian as an alternative, but the private equity firm decided against pursuing the holding.
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