The two companies released a statement stating that they have agreed on a price of €20.50 per Suez share subject to the signature of the Combination Agreement. Subject to obtaining a fairness opinion in accordance with applicable regulations, this offer would be recommended by the Board of Directors of Suez upon signature of the definitive agreements.
The agreement would result in the creation of a global giant in waste and water services that the two companies have termed “a global champion of ecological transformation” with revenues of around €37 billion.
The two groups have agreed to enter into definitive merger agreements by May 14. The new Suez resulting from this agreement is expected to be owned by a group of shareholders including financial partners and employees and will be majority French.
Its scope will be the municipal water and solid waste activities of Suez in France as well as the activities of Suez in Italy, the Czech Republic, Africa, Central Asia, India, China and Australia.
"We have been calling for a negotiated solution for many weeks and today we have reached an agreement in principle that recognises 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,” said Philippe Varin, the Chairman of the Board of Directors of Suez.
"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 mobilisation in implementing the Suez 2030 strategic plan, of which everyone can be proud,” said Bertrand Camus, CEO of Suez.
"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,” commented Antoine Frérot, CEO of Veolia. “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.”