Suez, a French waste and water management company, is hesitating over an unsolicited takeover approach from Veolia, which proposed to buy a 29.9 percent stake in Suez from Engie for €2.9 billion ($3.45 billion).
According to Reuters, Veolia said with the offer it aimed to create a “world champion of ecological transformation;” however, Suez said the offer carried “great uncertainties.”
“Veolia’s offer raises concerns about the future of water treatment and distribution activities in France, as well as the level of employment given the amount of synergies announced by Veolia,” Suez said in a company statement following the offer. “The complexity of the chosen process would lead to two years of operational disruption whilst, in a post-COVID context, the teams are focused on implementing their strategic plan.”
If Engie does accept Veolia’s offer, Veolia will formally bid for the rest of Suez.
The deal would give Suez an enterpr
