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Shares in French utility Suez surged on Monday, after water and waste management company Veolia offered to buy a stake in Suez as a prelude to a full takeover of the company.
Late on Sunday, Veolia said it was offering to buy a 29.9% stake in Suez from French gas and power utility Engie for 2.9 billion euros ($3.45 billion), saying it aimed to create a “world champion of ecological transformation”.
Suez shares were up 16% by 7:10 a.m. GMT. Engie shares rose 5.6% while Veolia’s shares advanced 2.2%.
If the offer is accepted by Engie, Veolia will then formally bid for the rest of Suez.