700 devices less than 2500 are in serviceThe abandonment of the A380 freighter is good news4 million viewers on RTL in Germany and 12No one could ignore the concerns of the young traderNational logic scans local considerationsOf course they shared a passion for wine8 million units marketed in France last yearThe current valuation level is attractive the Elimination of odours tobacco benzene ammoniaEven if democracy is still far from perfectCan take a highway with a specific destination objective and decide along the route to borrow a ramp to go visit a worthy of interest, or even stop at length both the attractions this step. It is a little what has done or intended to Veolia, even divert some of its passengers.
French champion of the environment was indeed on a clear path since her separation from its former parent company, Vivendi: continue the path that has been in a few years of the former number a French water and number two of the waste the world leader in services to communities; number one in the water, the waste (in terms of assets), energy services and first operator in the management of land-based public transport. Despite its positions, its size remains relatively modest since it has only 3 of the world market of services to communities.
By announcing in June that he wanted to marry with Vinci, world leader in the building and public works and virtuoso car parks and motorways, the group led by Henri Proglio surprised. By abandoning his project in a few days because the opposition of management of Vinci, Veolia appeared to lack determination, to the point that one could question the soundness of its strategic line. In fact, Vinci, weakened by a crisis at the Summit, was an exceptional opportunity to double in size by combining complementary trades to identify important synergies, particularly in public-private partnerships for Veolia. More visionary than Warrior, Henri Proglio, whose intentions had been disclosed prematurely, preferred refuse the obstacle that launching a trench warfare against a recalcitrant management, doubtful markets and administrators divided. The party was certainly challenging but playable. However, Veolia was not prepared to pay the premium that would have packed the shareholders of Vinci. Five months later, force is to see that they have more lost because of the intransigence of their leaders than those of Veolia.
The respective increases of the two groups traded since shows indeed that, if initially proposed exchange parities had been implemented, Vinci shareholders paid in securities Veolia would today 11 richer than they are in having remained isolated, this without taking into account the creation of additional value that would have driven the identified synergies.
But having turned back the toll on the da Vinci ramp does not preclude Veolia to have great potential for development. Fell into the environment when he was small, the heir of General water has thought for years to the challenges that growth would pose to the world. He thus developed a vision of the needs that must be met to respond to the situation in more populated and increasingly polluted communities. With experienced teams and proven technologies in its trades because of important research and development, the group is to provide innovative solutions to communities.
Passing the basic management of the distribution of water and the waste collection services benefits sophisticated with a real added value, Veolia could be required to obtain new contracts or renew old responding to increasingly sharp of the communities. His simultaneous presence in water, sanitation and the treatment of waste, the production of heat and energy recovery makes it possible to play synergies. His further presence in public transport in fact also a global interlocutor of agglomerations face the problems of pollution and greenhouse gases.
At the time where its European counterparts the German E.ON and RWE have abandoned the environment for energy that Suez takes a turn at 90 degrees in this field, Veolia becomes a unique actor. Its major competitors of tomorrow are the large local authorities who manage collective services in countries such as the Germany, the Italy or China. But fort his advance technology, Henri Proglio believes it is ten years to turn before to see come the compete in its markets. The Group therefore wants to put Overdrive during this period to cement its position by increasing its research and recruitment efforts. With 300,000 employees, it should recruit 150,000 over the next five years. With the know-how and the men, there is no desire to find the money to finance its growth. Having reduced to acceptable proportions the colossal debt inherited from Jean-Marie Messier, Veolia can play on the difference between the performance of its invested capital (greater than 10) and the rate of interest (from 3 to 4 per cent net) to finance an ambitious growth in good conditions.
Henri Proglio remains ready to seize any opportunity. After the shuffling with Enel on the Suez Environment folder, Veolia could return to load if the output of Suez Environment becomes news after the merger with gas of France. A very plausible hypothesis for several players in the folder, shareholders or leaders of the future group. In adopting the international activities of Suez Environment, Veolia would gain time in its growth projects in some areas. Particularly in Europe, where the two groups are complementary in countries such as the Hungary and Suez has a strong presence in Spain, that Veolia no longer since its withdrawal of CFC, to which it had made its environmental activities.
However, the operation is not a must and Veolia the will not at any price. However, with an enterprise value of the order of 6 to 8 billion euros, this asset may be of interest to many people, and the auction could climb. In any event not of clerc are over implementation, and Henri Proglio account show that the road is straight and that single slope that interests him is the harmonious and profitable growth.
