Veolia’s bid for SUEZ - Ardian and GIP emerge as new joint bidder

In the latest development in the proposed takeover bid by Veolia for the SUEZ Group, the Board of directors of SUEZ has confirmed that it has received a letter of intent from Ardian and Global Infrastructure Partners (GIP).

A statement issued by the Board said that SUEZ, with the support of Ardian and GIP, was now proposing  “an amicable solution” in the interest of all stakeholders.

The Board said the letter would facilitate the emergence, and in a short time frame, of an amicable solution to the situation created by Veolia’s approach, commenting:

“On such a basis, SUEZ is willing to open a dialogue with Veolia with the aim of building a solution in the interest of all concerned parties, which would reinforce both of the two French leaders in environmental services.

“In the context of friendliness between SUEZ and Veolia and in all cases without dismantling SUEZ, the letter of intent paves the way to a global solution, through different  arrangements all with equivalent effect, including an offer by the investors for SUEZ’ shares at a price of EUR 18 per share (cum dividend). The proposal is subject in particular to the completion of confirmatory due diligence.”

The Board of Directors of SUEZ have unanimously welcomed the approach, saying that as well as enabling an offer to all of SUEZ’ shareholders with a rapid execution, it would also:

reinforce both of the two French leaders in environmental services through a friendly solution

protect employment in France and internationally during the current critical economic situation

maintain necessary competition, notably in France

accelerate SUEZ’ growth strategy in key markets

increase SUEZ’ capacity to invest, notably in innovation and technology expertise

maintain a majority French shareholding structure with a significant increase in the Group’s employee shareholders.

Philippe VARIN, Chairman of the Board of Directors, commented:

“The Board of Directors gives its unanimous support to the solution envisaged with the participation of responsible, long-term, top quality investors. It has mandated the Group’s CEO to continue to work to deliver it, including opening discussions with Veolia to reach a solution in line with SUEZ’ corporate interest.”

Bertrand CAMUS, Chief Executive Officer, added:

“In keeping with our Purpose, SUEZ proposes, with the support of Ardian and GIP, to open a constructive dialogue with Veolia with the aim of building a solution in coherence with the strategies of both Groups, and which would reinforce both of the two French leaders in environmental services. This project has the support of SUEZ’ Board, its employee shareholders and the Group’s management: it respects the interests of all stakeholders – shareholders, employees and clients – in France and internationally.”