The publication of the final results of Veolia’s public takeover bid (OPA) on Suez is expected on Monday, even if the first estimated results could be known on Friday. Veolia, which cleared the obstacles one by one and ended up defeating the resistance of Suez, displays its confidence in the home stretch: January 18 will be the “day one”, the day when it will settle the takeover bid and seize of the 150 year old enemy. The group already holds nearly a third of the capital. He did the accounts, communicated a lot, and has no doubts about success, with an offer at 20.50 euros per share (19.85 by withdrawing the dividend paid). And this even if a reopening of takeover bid is not excluded for latecomers. Beyond 90% of shares, he may also request a “squeeze-out” to recover the last securities.
Xavier Regnard, analyst at Bryan Garnier, has “no doubt” either about the takeover: “the price is attractive, the Suez price has never been at these levels”. “The bulk of the battle is over. 2022 will be a year of transition to join the group,” he said.
Operation at 13 billion euros
For the world number one in the sector, it is a global operation of 13 billion euros. Its financing is planned by a capital increase of 2.5 billion, hybrid debt (2 billion) but also the resale of 40% of Suez to new shareholders. Veolia is recovering Suez’s debt, but retains its investment capacity and controls its debt, ensures its management. By absorbing some 60% of Suez, it will see its turnover go from 27 to 37 billion euros, its workforce from 180,000 to 230,000, growth mainly focused on foreign countries. Present throughout the world, Antoine Frérot’s group wants to be “the champion of ecological transformation”, developing, in addition to the public water and waste markets, that of industrial customers, the treatment of toxic waste and recycling. complex, energy efficiency …
“Chinese torment”
This dream of union between the former Lyonnaise des Eaux and the former Générale des Eaux, Suez and Veolia had approached in 2006, then in 2012, in vain. This time, it all started at the end of August 2020 with a surprise assault, with the acquisition by Veolia of 29.9% of Suez from the energy company Engie. There followed a violent battle between the two rivals, in court, in the media, in the ministries … until the case was settled in April, after the secret mediation carried out by a former boss of GDF Suez. Under the terms of this agreement, Veolia raised its offer. Unable to keep all of Suez for competition issues, it also agreed to retrocede almost all of the French assets, plus some activities abroad, to a consortium of new buyers responsible for maintaining and developing an independent Suez.
This transfer of titles, creating a “new Suez”, could take place at the end of January, says one at Veolia. The French Meridiam and American GIP funds will own it, at 39% each, alongside the Caisse des Dépôts / CNP Assurances. On arrival, this future Suez, withdrawn from the Stock Exchange, will represent nearly 7 billion euros of activity, including 5 in Europe (especially France) – against 17 so far. It will increase to 40,000 employees. In France, most will remain Suez, a minority joining Veolia (in particular nearly 300 employees of the headquarters of Defense). Veolia is committed to maintaining employment for 4 years, the consortium 5 years.
But before the closing of the takeover bid, the unions express the concern of the personnel, in particular on the fate of the future Suez. A general manager was appointed, Sabrina Soussan, passed by Siemens. “We are in an artistic vagueness,” said Jérémy Chauveau, of the CFDT-CGT-CFTC union. “The DG must present its plan to put Suez back on track, and the separation is done cleanly and quickly. We still have questions. Let’s stop the Chinese torture, it’s exhausting.”
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