(AOF) – In a press release, Suez announces that it has taken due note of the agreement reached between Veolia and Macquarie concerning the acquisition of the former assets of Suez R&R in the United Kingdom. This agreement is subject to the exercise by Suez of its right of first refusal, in addition to the regulatory authorizations to be obtained from the competition authorities.
Suez confirms its interest in acquiring the former assets of Suez R&R in the UK and will study in detail the terms of the agreement concluded with Macquarie, following which Suez will decide whether or not to exercise its right of first refusal.
Upon receipt of the notification by Veolia, Suez will have 30 working days to acquire these assets under the same terms and conditions as those proposed by Macquarie.
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– World number two in environmental services, created in 1880;
– €17.2 billion in revenue, generated mainly in Europe and America, generated by 3 divisions: water (39%), recycling and waste recovery (41%), then solutions and renewable energies;
– “Building a sustainable environment now” business model based on long-term businesses (and contracts) ensuring good visibility and a high barrier to entry due to capital intensity, defined in the Shaping 2030 plan: ambition to be the world leader / use of contract selectivity, portfolio rotation, organizational simplicity and employee commitment to customers;
– Capital being remodeled: after its takeover bid launched at the end of July 2021, Veolia will sell to a consortium of shareholders a new Suez refocused on water and waste management in France as well as international assets (Africa, Central Asia, China, India , Australia, Czech Republic); the capital will then be controlled by a consortium comprising GIP and Meridian for 40%, the Caisse des dépôts for 20% and the employees for at least 3% / Bertrand Camus, managing director, will be replaced by a person from outside the company;
– Debt reduced to €8.8 billion at the end of September 2021 with a leverage effect of 2.7.
– Shaping 30 strategy: by 2023: cost savings of €1bn and 50% increase in R&D and digital investments;
– Innovation strategy articulated between waste (recycling and reuse) and water (alternative resources, treatment and distribution), with the ambition to generate 30% of revenues from technologies and data-based solutions: global network 17 research centers, including the BioresourceLab / investments in innovative companies via Suez Ventures, and investments in the Demeter 3 and 6 seed funds and Paris Green Funds / scientific and industrial partnerships, presence in collaborative platforms;
– Environmental strategy linked to the group’s activity, 74% of revenues contributing to environmental protection: 45% reduction in CO2 emissions, 100% sustainable solutions and 20 Mt of CO2 avoided per year at customers / storage carbon, in partnership with Airex Energie and Fermentalg / production of green hydrogen with Sipperec from urban waste…;
– In France, relaunch of investments in the fight against water leaks (150-year-old network).
Threat to the European energy system
The leading importer of German gas, Uniper posts 54% of the volumes it buys from Russia. Following the war in Ukraine, the group had to acquire the volumes it lacked on the spot market, the prices of which had exploded. In difficulty, he requested aid from the German state, which raises concerns for all European energy companies. Nevertheless the German RWE and the French Engie reacted by arguing that their situation was very different. RWE stressed that it was less dependent on Russian gas. As for Engie, it benefits from the diversification of its sources of supply, with an increase in the volumes of LNG delivered to France and contracts with Norway and Algeria. The group has also adapted its hedging strategy to strengthen its resilience.