The Suez Veolia Agreement: Everything You Need to Know
In the world of water and waste management, the recent Suez Veolia agreement has been making headlines. This agreement, which was signed on 11 April 2021, will see Veolia take over Suez’s water business, creating a mega water and waste management company.
So, what does this mean for the industry, and how will it impact the environment and consumers? Let’s take a closer look.
The Background
Suez and Veolia are two of the largest water and waste management companies operating globally. They have been in direct competition with each other for years, and their rivalry has often been fierce.
In August 2020, Veolia made a public offer to buy Suez, which was rejected by Suez’s management. However, Veolia persisted, and in December 2020, it increased its offer to €18 per share. This time, Suez’s management agreed to enter negotiations.
The Agreement
After months of negotiations, Suez and Veolia finally reached an agreement in April 2021. Under the agreement, Veolia will acquire Suez’s water business for €13.3 billion. This includes Suez’s water management and treatment activities, as well as its industrial water activities.
Suez’s waste management activities, on the other hand, will be spun off into a new company called Suez Organique, which will remain independent.
The Impact
The Suez Veolia agreement is set to have a significant impact on the water and waste management industry. It will create a company that is nearly three times larger than its nearest competitor, and it will have a presence in over 40 countries.
There are concerns that this concentration of power could lead to higher prices for consumers. However, Veolia has assured customers that prices will not rise as a result of the agreement.
The agreement could also have positive environmental impacts. Veolia has a strong reputation for sustainability, and the company has committed to achieving net-zero emissions by 2050. By acquiring Suez’s water business, Veolia will be able to expand its reach and implement sustainable practices in new markets.
The Future
The Suez Veolia agreement is not yet finalised. It still needs to be approved by regulatory authorities in multiple countries, including the European Union and China.
Assuming regulatory approval is granted, the acquisition is expected to be completed by the end of 2021.
In conclusion, the Suez Veolia agreement is a significant development for the water and waste management industry. While there are concerns about the concentration of power, there is also the potential for positive environmental impacts. It remains to be seen how the agreement will ultimately play out, but it is certainly one to watch.