VEOEY - 150-Year-Old Rivalry Ends Creating an Infrastructure Giant
At a time when the U.S. is debating a major infrastructure bill, leading European rivals Veolia Environment (OTC: VEOEY) and Suez Environment (OTC: SZEVY) have agreed to merge after several months of contentious discussions. The deal will have Veolia purchase Suez for 20.50 euros ($24.39) per share, compared with an initial offer of 15.50 euros. The purchase price represents the equivalent of about $15.5 billion, with the newly combined company expecting annual revenue of about $44 billion.
With the merger, the companies seek to take advantage of a growing focus on infrastructure and climate-change spending from governments worldwide. Though Suez generated more than 60% of its sales in Europe in 2019, the company operates on six continents. North America represented 13% of 2019 revenue, with the balance spread among South America, Africa, the Middle East, Asia, and Australia.
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150-Year-Old Rivalry Ends, Creating an Infrastructure Giant