S&P Global Ratings has weighed in on the potential merger between Veolia and rival global water and waste group Suez, which appears to be at a standstill.
The ratings agency said Veolia’s takeover bid for Suez, which was originally announced in November 2020, would reinforce Veolia's already strong business profile. According to S&P, adding Suez would turn Veolia into a global leader in water, environment and energy solutions, with a stronger market position and greater diversification. Suez would increase the Veolia group's size to €6.5 billion ($7.7 billion) after disposals in 2023, according to S&P.
In addition, the rating agency says Suez's activities are less volatile than Veolia's, due to its geographic and business mix.
Veolia offered a public takeover bid for its rival Suez in November 2020, following an unsolicited takeover bid that offered €2.9 billion ($3.45 billion)