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Veolia Environnement SA VIE

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Veolia Launches EUR 2.50 billion Rights Issue With Good Timing, Fair Value Estimate Maintained

Tancrede Fulop, CFA Senior Equity Analyst

Analyst Note

| Tancrede Fulop, CFA |

As its shares trade at a 10-year high, Veolia launched a EUR 2.50 billion rights issue to fund the acquisition of 70.10% of Suez it does not hold. The amount is in line with what the company guided at its first-half results late July. However, it is above our EUR 2 billion assumption. All in all, the negative valuation impact is not material so we maintain our EUR 30 fair value estimate--along with our no-moat rating--which offers limited upside to the theoretical ex-rights share price of EUR 28.04. 

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Company Profile

Business Description

Veolia is the largest water company globally and a leading player in France. It is also involved in waste management with a significant exposure to France, the United Kingdom, Germany, the United States, and Australia. The third pillar of the group is energy services, giving the group significant exposure to Central Europe. Veolia started to refocus its activities in 2011, leading to the exit of almost half of its countries and of its transport activity, which should be completed within the next few years.

30, rue Madeleine Vionnet
Aubervilliers, 93300, France
T +33 185577000
Sector Industrials
Industry Waste Management
Most Recent Earnings Dec 31, 2008
Fiscal Year End Dec 31, 2021
Stock Type
Employees 181,514