Suez Says Veolia's Stake Purchase Remains Suspended -- Update

--Suez workers' unions agree employee consultations taking place by end of May 2021 to unlock Veolia's stake purchase.

--Veolia says power to determine starting point of consultation process not within Paris Court of Appeal remit.

--Veolia to initiate proceedings and regain stake purchase rights no later than Feb. 5.

By Mauro Orru

Suez SA said Tuesday that its workers' unions have signed an agreement whereby employee consultations should take place by the end of May 2021 to unlock a court-ordered suspension of Veolia Environnement SA's purchase of a stake in Suez.

The French waste-management company said on Nov. 19 that the Paris Court of Appeal confirmed a decision suspending Veolia's acquisition of a 29.9% stake in Suez from Engie SA because no committee consultation had been completed.

Veolia had previously confirmed that it planned to make a full takeover bid for Suez, which also remains on hold pending consultations with 99 social and economic committees.

Suez said Tuesday that the court had once again confirmed the suspension.

However, Veolia said it is not within the court's power to determine the starting point of the information and consultation process.

"Veolia will initiate proceedings before the competent jurisdictions to have them confirm that this time period started on November 5, 2020 at the latest," the company said in a statement.

Veolia reiterated that it would recover all its rights relating to the stake purchase no later than Feb. 5.

Write to Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

December 08, 2020 08:32 ET (13:32 GMT)

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