Veolia insisted yesterday (17 January) it would not countenance selling its 29.9% share in Suez, the rival waste management company which it is bidding to take over.
Veolia’s declaration came after investment companies Ardian and Global Infrastructure Partners (GIP) waded into the takeover battle with an offer of their own for Suez.
Waste management firm Suez has its headquarters in Paris (picture: Shutterstock)
On Sunday evening, Veolia’s chief executive Antoine Frerot described the company’s share in Suez as the first step in the “inevitable construction” of a single “world champion of ecological transformation”, and not an element of a financial strategy.
Mr Frerot’s comments came after Ardian and GIP announced they had sent a letter of intent to the Suez board of directors, including an offer to purchase Suez shares at a price of €18 each. This matches the offer submitted to Suez by Veolia.
Veolia said any project which would involve the sale of its stake in Suez would be considered “hostile”.
“I remain open to discussion with the board of directors of Suez within the framework of the project that I sent them last week”
The involvement of Ardian and GIP is a new twist in Veolia’s ongoing move on Suez, which has been described as a proposed “takeover” or “merger”.
On 7 January Veolia sent the Suez board of directors a public offer proposal, detailing how it intended to bid for 70.1% of the company (see letsrecycle.com story). Mr Frérot said yesterday he was willing to talk with Suez based on the terms he set out in the letter on 7 January.
“I remain open to discussion with the board of directors of Suez within the framework of the project that I sent them last week,” Mr Frérot said. However, Veolia also said that its offer of showing confidential information privately to representatives of worker groups and others as part of the process had not been taken up by Suez.
United Kingdom
Ardian and GIP say they want to support a “quick, friendly and positive” solution that strengthens the two French waste firms in the interest of all stakeholders.
They say that together they provide a stable shareholder base to support Suez’s development in France and abroad. The offer has been made with the understanding that Suez would not be dismantled.
Ardian says that, in the environment sector, its infrastructure wing has been a shareholder alongside Suez de Sita Cornwall and Sita Northumberland in the United Kingdom.
Meanwhile, GIP numbers waste management company Biffa among the firms in its portfolio.
‘Amicable solution’
Having unanimously welcomed Ardian and GIP’s approach, Suez’s board of directors described the offer as an “amicable solution”. After months of refusing to engage with Veolia, the board said that on the basis of the offer from the private equity firms it was willing to open talks with its rival.
Bertrand Camus is chief executive of Suez
Philippe Varin, chairman of Suez’s board of directors, said: “The board of directors gives its unanimous support to the solution envisaged with the participation of responsible, long-term, top quality investors. It has mandated the group’s CEO to continue to work to deliver it, including opening discussions with Veolia to reach a solution in line with Suez’s corporate interest.”
‘Friendly solution’
The offer would reinforce the two French firms through a friendly solution and protect employment in France and internationally, Suez said. The firm suggested it would maintain necessary competition, accelerate Suez’s growth strategy in key markets and increase its capacity to invest.
Suez’s chief executive Bertrand Camus said: “In keeping with our purpose, Suez proposes, with the support of Ardian and GIP, to open a constructive dialogue with Veolia with the aim of building a solution in coherence with the strategies of both groups, and which would reinforce both of the two French leaders in environmental services.
“This project has the support of Suez’s board, its employee shareholders and the group’s management. It respects the interests of all stakeholders – shareholders, employees and clients – in France and internationally.”
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Source: letsrecycle.com Waste Managment
