VEOEY - Veolia Suez agree to Euro13B merger agreement

Veolia Environnement (VEOEY) and Suez (SZEVY) announce an agreement in principle to merge that values Suez at nearly €13B ($15.44B), ending a long-running and bitter takeover battle between the two French companies.Veolia agreed to pay €20.50/share for the ~70% of Suez it does not already own, after hiking its bid price from €18; the two companies will enter into a definitive agreement on May 14.The transaction will create a global giant in waste and water services under the Veolia umbrella with ~€37B in annual revenues; it will require approval from competition authorities in several countries.Investors in Europe were happy with news of the agreement, with both Suez and Veolia rising more than 5% in Paris trading.Veolia's "substantial regulated exposures in water, waste and heating should be fine despite inflationary pressures," Valjyrie Trading Society writes in a bullish analysis published on Seeking Alpha.

For further details see:

Veolia, Suez agree to €13B merger agreement