The passenger transport sector is constantly changing due to the increase in the transport demand and investments, as well as the increasing need for sustainable development. To that end, the merger between Transdev and Veolia will answer all these needs. After the approval of the Investment Committee, Caisse des Dépôts decided to enter exclusive negotiations with Veolia Environnement for the Transdev – Veolia merger. This project will lead to the creation of a new company, where Transdev and Veolia will own equal shares. This merger will have a positive impact at international level and the new company will become a world leader in the supply of passenger transport services.
On May 5, 2010, Caisse des Dépôts and Veolia Environnement signed the final agreements for the Transdev – Veolia Transport merger. This transaction aims at unifying the two companies into a single company, which will have a turnover of EUR 8 Billion and 130.000 employees.
“The planned merger with Transdev is guided by very powerful industrial logic and is perfectly consistent with Veolia Environnement’s strategy, which sees transport as a key component of its environmental services offering. This merger opens up outstanding growth prospects benefiting the personnel, clients and shareholders of Veolia”, said Henri Proglio, Chairman and CEO of Veolia Environnement, during a press conference. As a long-term strategic investor, Caisse des Dépôts plans to become a true investor in this new company. Based on the frame-agreement announced in December 2009, the new joint-venture Veolia Transport-Transdev will be owned by Veolia Environnement (50%) and Caisse des Dépôts (50%). In order to finalize the transaction, Caisse des Dépôts will agree to a EUR 200 Million capital increase for Transdev.
“The new company will benefit from a 6% annual increase. In 2015, its value will increase to EUR 10.2 Billion”, said Augustin de Romanet, CEO Caisse des Dépôts.
The operating cash flow amounts to EUR 500 Million. The merger between the two companies will contribute to the development of the new joint-venture, generating costs of around EUR 70 Million per year.
The buy-out of RATP’s 25.6% stake in Transdev will take the form of an exchange of selected French and international assets belonging to both Transdev and Veolia Transport. As a result, RATP will strengthen its international presence, notably in the UK, Italy and Switzerland, as well as in France.
2009 revenues of the assets transferred to RATP in exchange for its 25.6% stake in Transdev amount to approximately EUR 340 Million.
The Veolia Transport – Transdev merger, as well as RATP’s exit from Transdev capital are being subjected to the authorization of the competent authorities and the official notification of the transaction should take place in the weeks to come. The transaction will also be subjected for authorization to the French Government, after the preliminary approval of the French Committee for Participations and Transfer.
Antoine Frérot, CEO of Veolia Environnement, will be the Chairman of the new joint-venture and Joël Lebreton, CEO of Transdev, will be the new CEO. Cyrille du Peloux, CEO of Veolia Transport, will be the new Deputy General Manager in charge of “Initial Public Offering” Operations.
The new initial public offering of the group will bring a capital increase in order to provide the necessary financial means to continue the development strategy.
Complementary advantages for a unique positioning:
Transdev:
– World leader in tram transport exploitation
– Renowned expertise in the field of urban and inter-urban transport
– Specific know-how for partnerships signed with local communities
– Competency in implementing major projects
Veolia Transport:
– Geographical position in 28 countries
– Expertise in all areas related to mobility, including rail transport and transport on demand
– Innovation for intermodality and environmental development
– Mergers with Veolia Environnement
by Pamela Luică
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