PARIS France’s Suez Environnement SCNES.PA vowed to fight Veolia Environnement’s (VIE.PA) $13 billion plan to take over the waste management division of Suez, casting fresh doubt over one of the most significant takeover deals in France since the financial crisis.
Veolia shares dropped 3.2 percent on Thursday, adding to sharp losses this week, as investors worried about the obstacles to the deal. Shares of Suez also fell by 1.7 percent, while France’s CAC 40 .FCHI index fell 0.6 percent.
Workers are silhouetted as they stand on top of a silo at a Veolia Environnement tank farm in Queretaro October 24, 2014. Garrido PARIS/PARIS French water and waste group Veolia Environnement (VIE.PA) has abandoned plans for the biggest ever European merger, the latest in a series of setbacks to its management ambitions.
A board meeting on Tuesday discussed Veolia’s planned tie-up with French water and waste group Suez Environnement (SEVI.PA), its chief executive officer said.
PARIS The chairman of French water utility Suez vowed to fight Veolia’s (VIE.PA) plan to buy the Suez Environnement unit EDRI.PA it does not already own and said the combined company would be a weak competitor in the environment sector. The two companies’ shareholders are due to vote on Veolia’s proposal to acquire all of EDRI at a meeting on July 30. If approved, the deal would make Veolia the top water and waste group worldwide with combined revenues of 23.1 billion euros (20.25 billion