Veolia and SUEZ’s boards have reached an agreement in principle on the key terms and conditions of the merger between the two groups.
The agreement would allow:
- The creation of a new SUEZ with revenues of around €7 billion.
- The implementation of Veolia’s plan to create a global champion of ecological transformation, with revenues of around €37 billion, through the SUEZ takeover bid, in which all the strategic assets identified by Veolia will remain.
- The reiteration of Veolia’s social commitments for a period of four years after the signature of the offer.
- A view to the integration and mix of teams, commitments to be made by Veolia regarding the composition of the management teams at headquarters and in the countries.
The two groups propose that the new SUEZ resulting from this agreement should be owned by a group of shareholders including financial partners from both groups and by employees. The majority of the shareholders of the new SUEZ will be French.
SUEZ Chairman of the Board of Directors, Philippe Varin said: “We have been calling for a negotiated solution for many weeks and today we have reached an agreement in principle that recognizes the value of SUEZ. We will be vigilant to ensure that the conditions are met to reach a final agreement that will put an end to the conflict between our two companies and offer development prospects”.
SUEZ CEO, Bertrand Camus said: “This agreement in principle gives us every chance of obtaining a global solution that would offer the essential social guarantees for all employees and prospects. I would like to thank all the SUEZ teams for their tremendous mobilization in implementing the SUEZ 2030 strategic plan, of which everyone can be proud. I know that I can count on them to remain focused in the coming months to ensure the best quality of service for our customers”.
Veolia CEO, Antoine Frérot said: “I am particularly pleased to announce today the conclusion of an agreement between SUEZ and Veolia that will enable the construction of the world champion of ecological transformation around Veolia, offering France a reference player in a sector that is probably the most important of this century. This agreement is beneficial for everyone: it guarantees the long-term future of SUEZ in France in a way that preserves competition, and it guarantees jobs. All stakeholders in both groups are therefore winners. The time for confrontation is over, the time for combination has begun”.
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