Veolia increases bid for Engie’s Suez stake to $4bn

France-based waste and water management firm Veolia Environnement has increased its offer for the majority of stake in Suez owned by Engie to $4bn.

Veolia is now offering EUR18 per share for 29.9% stake of Suez held by Engie. Earlier, the French firm offered EUR15.50 a share.

In its new bid, Veolia also committed to continue Suez workers’ employment in France if it takes control of the company.

Engie holds around 32% stake in Suez, which supplies water that is suitable for every type of use. The company recovers wastewater and waste for conversion into new resources.

Veolia said upon Engie’s acceptance for the revised bid, it will launch a tender offer for the rest of Suez’s shares on a friendly basis.

In its initial offer in August 2020, Veolia said it has already identified the limited antitrust issues that such a transaction would entail, and has anticipated remedies.

The French firm identified an acquirer for Suez’s French water activities, Meridiam, a French infrastructure management firm, capable of preserving competition and employment.

A formal commitment has been made by Meridiam to the acquisition. Veolia said the entire transaction would be accretive from the first year and group debt would remain under control.

Messier Maris & Associés, and Perella Weinberg Partners are acting as financial advisers to Veolia for the transaction.

The Veolia group supplied 98 million people with drinking water in 2019 and 67 million people with wastewater service.