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Germany's Remondis says wishes to buy up to 40% of the "New Suez"

05/08/2021 18:13
Germany's Remondis says wishes to buy up to 40% of the "New Suez"

- German recycling group Remondis said on Saturday it offered to take a minority stake of up to 40% in the "new Suez" that will hold water management firm Suez's SEVI.PA French water assets and some international pieces after its takeover by bigger peer Veolia VIE.PA.

On April 12 Veolia and Suez announced a 13 billion euro ($15.81 billion) merger under which - in part to ease antitrust problems - some of Suez's assets will be spun off into a new entity with around 7 billion euros in revenue.

"Remondis wishes to be able to participate in the round table of the new Suez alongside French shareholders Meridiam and Caisse des Depots," the German group said in a statement late on Saturday.

"It is ready to subscribe for shares up to 20%, those initially intended for European investors but made available after the withdrawal of Ardian and to increase its stake to 40% of the capital," it added.

The German group said it made the offer on Friday to Suez President Philippe Varin, and to his managing director, Bertrand Camus.

Investment funds Meridiam, Ardian and Global Infrastructure Partners, as well as state-backed Caisse des Depots and employees, were in line to be shareholders in a "new Suez", which would mainly comprise Suez's French water activities and some international assets, including in Italy, Czech Republic, India and Australia.

Meridiam was set to own 40%, Ardian-GIP 40% and the others 20%. But Ardian Infrastructure chief Burghardt had flagged his group would not take part in this project.

In his letter to Varin and Camus, Remondis Chief Executive Ludger Rethmann said the company would not need external financing to carry out the operation.

Suez and Veolia said they aimed to reach a definitive merger agreement by May 14.

($1 = 0.8222 euros)

(Reporting by Sybille de La Hamaide; Editing by Dan Grebler)

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