(Bloomberg) -- Veolia Environnement (OTC:VEOEY) SA offered to buy a 29.9% stake in Suez SA (OTC:SZSAY) and is prepared to make a full bid for the remainder of its French rival in an attempt to create a world leader in waste and water services.
Veolia offered to acquire the stake from Engie for 15.50 euros a share in cash, 27% more than where the target closed on Friday and a 50% premium to where it traded before Engie said it was planning a major asset sale program in July, Veolia said in a statement Sunday. The offer runs until Sept. 30.
A full bid, valuing Suez stock at 9.7 billion euros ($11.6 billion), would seek to revive a previous merger attempt that the French government declined to approve in the face of heavy job cuts.
“This project is part of a friendly approach, as we share with Suez the same profession, the same culture and the same values,” Veolia Chief Executive Officer Antoine Frérot said.
©2020 Bloomberg L.P.
