French waste management companies Suez and Veolia have agreed on basic features of a merger after months of wrangling. The two rivals said they agreed on a price of 20.50 euros for one Suez share.
Veolia's previous offer had been 18 euros. The new group is expected to have sales of around 37 billion euros. The groups want to draw up final contracts by May 14.
Veolia launched the battle for Suez in the summer. For the company, it is already the second attempt to take over Suez. In 2012, the takeover had failed due to antitrust concerns, among other things.
France's Finance and Economy Minister Bruno Le Maire expressed satisfaction with the agreement. "I am pleased that Veolia and Suez have reached an amicable agreement." This, he said, is in line with the desire expressed by the state from the outset. Competition, employment and good development of the companies are guaranteed, he said.
The agreement reached by the groups means that Suez's share capital is valued at around 13 billion euros. However, the company is also indebted to the tune of 10 billion euros. At the beginning of October, Veolia had already bought the energy group Engie's 29.9 percent stake for 3.4 billion euros - link - more like this - link
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