The decision handed down by a Paris court on Friday 9 October puts Veolia’s purchase of a 29.99% stake in Suez from Engie on hold until the staff representation bodies at Suez have been informed and consulted. These kinds of decisions are rare, despite the fact French labour law recognises right of staff representatives to take legal action if their rights to information and consultation are not respected, which can result in transactions being suspended. Suez’s management, which is opposed to the operation, has supported staff representatives. The court’s decision requires the two companies involved (Engie and Veolia) to provide Suez with the information that would enable it to fulfil its obligations.
An unusual backdrop. The decision marks a new twist in the saga involving Veolia and Suez, two major French water and waste management groups, starting when the former announced its intention to take control of the latter, which is completely opposed to the project. Another key player is Engie, the former parent company of Suez, which to sell its 29.9% holding to Veolia on 6 October. Veolia’s plan was then to take over its industry competitor before offloading certain assets to boost the combined group’s competitive position.
Do you have information to share with us?