(Bloomberg) -- The French government again urged Suez SA and Veolia Environnement SA to seek a “friendly” resolution to their long-running takeover battle.
It’s up to the two companies to assess their differences and find a solution, Finance Minister Bruno Le Maire said on RTL Radio. He didn’t say whether the government would find acceptable the potential 11.3-billion-euro ($13.6 billion) alternative offer for Suez from two private equity firms, Ardian SAS and New York-based Global Infrastructure Partners.
The French government is weighing in on a bitter stalemate between the two corporate giants. It has been pushing for a friendly deal between the water and waste industry competitors ever since Veolia proposed an acquisition of Suez last year. Suez opposes Veolia’s plan and has sought out alternative suitors, while the government insists that any solution should seek to maintain French control over the company.
Suez had been refusing to engage with Veolia for months and agreed to talk to its French arch rival only after the potential private-equity approach. Even so, Veolia says it has no intention of selling the 29.9% stake it bought in Suez from partially state-owned Engie SA last year as a prelude to a full takeover. The government had opposed Engie’s decision to sell the stake, but failed to prevent it.
The board of Suez had welcomed the new approach by Ardian and GIP, which it said effectively blocked Veolia’s bid. Suez managers also said the offer would protect jobs and competition in France, something the French government is prioritizing.
Veolia would probably have to break up Suez after an acquisition, in order to comply with antitrust rules. Representatives of several Suez unions gave public support to the Ardian-GIP offer on Monday.