...- On Feb. 7, 2021, Veolia Environnement S.A. submitted a proposal to France's stock market regulator AMF outlining its offer to acquire the remaining 70.1% stake in Suez for 20 billion, which corresponds to 12.1 billion for Suez's net debt and 7.9 billion for Suez's equity. - We understand Suez's management remains opposed to Veolia's takeover of the company, and we anticipate operational and other hurdles for Veolia if the transaction proceeds; we therefore now regard Veolia's management and governance as fair rather than satisfactory. - If the takeover succeeds, we believe Suez's assets would add significant scale and business diversification to Veolia's operations, almost doubling EBITDA compared with the 3.6 billion we expect will be reported for 2020. If the offer is not successful, we would reassess our base case scenario. - If the offer succeeds, we understand Veolia plans to undertake several remedy measures, including disposals and bond issuance, should the takeover of Suez go...
