Econostrum | Economic News in the Mediterranean
en.econostrum


   
en.econostrum



CEO of Engie raises the bidding for the sale of his Suez shares to Veolia



           


Jean-Pierre Clamadieu does not want to sell his Suez shares at €15.50 as proposed by Veolia (photo: DR)
Jean-Pierre Clamadieu does not want to sell his Suez shares at €15.50 as proposed by Veolia (photo: DR)
FRANCE. Veolia will have to negotiate firmly in order to acquire 29.9% of the Suez shares held by Engie. On Friday 4 September 2020, Jean-Pierre Clamadieu, chairman of Engie, warned on the French television channel BFM Business, that "the account is not there because we need to make a valuation of Suez. Our vision is that the value of Suez is more important than the basis of this discussion (...) There is a huge amount of work to be done on this subject and it must be done quickly".

Veolia is offering €15.50 per share, or €2.9bn, to buy almost all of Engie's stake (29.9% out of 32%) in Suez, the world's second largest water and waste management company. The Chairman of Engie also wants "an inclusive offer in which the Suez teams feel involved". Here again, the problem is that the management of Suez made known, in a press release on August 31, 2020, its hostility to the arrival of Veolia in its capital. "The proposed strategy would generate disynergies and loss of opportunity in France and internationally. Moreover, the complexity of the process chosen would lead to two years of operational disruption, at a time when, in the post-Covid context, the teams are focused on implementing their strategic plan", the text indicated.
 

All the more so as Veolia's operation is part of a broader approach, as its CEO Antoine Frérot has confided, with the will to merge the two French groups into a "super world champion" of ecological transformation with the launch of a takeover bid.

Jean-Pierre Clamadieu calls "for a dialogue to be established between the two companies to (...) see how the project can evolve".


Frédéric Dubessy


Friday, September 4th 2020



Article read 391 times


Articles which should interest to you
< >

Thursday, September 24th 2020 - 16:08 West Bank VSEs to benefit from $3 million in loans