Suez taps Quebec pension in GE Water bid, sources say
07 MAR 2017
Suez [EPA:SEV] has teamed up with Caisse de dépôt et de placement du Québec (CDPQ) to bid for General Electric’s [NYSE:GE] water technology business, two sources briefed on the matter said.
The French environmental services group and Canadian investment fund are competing against several private equity firms, Blackstone Group, Warburg Pincus, CD&R and Bain Capital, as previously reported.
Kurita Water Industries [TYO:6370] has also been reported by this news service as interested in the assets. The Tokyo-based water treatment company is roughly the same size as GE Water.
GE has asked suitors to submit final offers for the business by early this week, several sources briefed on the matter said. Bids are expected to be around USD 3bn, as reported.
GE, Suez, Bain, Blackstone and Warburg declined to comment. CDPQ and CD&R did not return requests for comment.
Suez confirmed its interest in GE Water late last month after this news service exclusively reported the company was pursuing the unit. The Paris-based company has not detailed how it plans to finance an offer. Suez has a EUR 7.7bn market cap and EUR 8bn in net debt.
Montreal-based CDPQ manages CAD 270bn in assets invested in public markets, private equity, infrastructure and real estate on behalf of pension and insurance funds.
GE, the Boston-based industrials conglomerate, has been shopping its water unit to help finance a plan to combine its oil and gas business with Baker Hughes [NYSE:BHI] and address potential antitrust concerns.
CD&R owns a similar water business, Solenis, and it could not be learned if the financial sponsor plans to bid for GE Water through its portfolio company.
GE likely prefers to sell its water assets to a buyer with minimum antitrust risk given its pending transaction with Baker Hughes, the third source briefed said. Earlier this week the Department of Justice launched an extended antitrust review of the deal.