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Suez buys GE Water in 3.2 bln euro deal, considers capital increase

Published 2017-03-08, 11:47 a/m
© Reuters.  Suez buys GE Water in 3.2 bln euro deal, considers capital increase
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PARIS, March 8 (Reuters) - French waste and water group Suez SEVI.PA said in a statement it and Canada's Caisse de dépôt et placement du Québec (CDPQ) have agreed to buy GE Water from General Electric (NYSE:GE) GE.N for an enterprise value of 3.2 billion euros ($3.37 billion).

Suez and CDPQ will set up a 70/30 joint venture to buy 100 percent of GE Water in an all-cash transaction, after which Suez will contribute its existing industrial water activities to the new Industrial Water business unit.

Suez said it had a fully underwritten bridge financing in place for the transaction, and is considering refinancing it through a capital increase of about 750 million euros.

It said its main shareholders, Engie ENGIE.PA , CriteriaCaixa and Caltagirone Group have confirmed their intention to participate in the capital increase for their pro rata share. ($1 = 0.9483 euros)

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