What if the white knight of Suez was called EDF?
EDF denies the idea of serving as a "white knight" at Suez. The scheme would create a service giant valued at 45 billion euros. And counterbalance Total's ambitions
A great burst of laughter as a denial. The EDF spokesperson dismisses a circulating scheme that the state-owned company could be the white knight coming to Suez's rescue in its fight against Veolia. "The merger between EDF and Suez would create a global heavyweight in the provision of services in France and internationally without areas of conflict of interest, which would also allow Total to be counterbalanced", explains a generally very well-informed source.
Affair of people
The fact that Jean-Bernard Lévy, CEO of EDF, is also a director of Société Générale, Suez’s bank adviser, helps make the information plausible. Just like the hatred he cultivates towards the CEO of Total: it would not be the first time that a personal affair has spurred a proposed deal in France. Thus, we remember Henri Proglio, boss of EDF, who dreamed of getting closer to Veolia, where Antoine Frérot had succeeded him. In any case, if marriage to 45 billion euros there is one day, it is indeed the State, shareholder with 84% of EDF which will decide.
EDF split in progress
And this is far from obvious. First, Veolia already owns nearly 30% of Suez. Then, the management of the energy company and the public shareholder engaged in a process of reprofiling the group called "Hercule" with a split between an "EDF Bleu" grouping together nuclear, dams and RTE and an "EDF Green" bringing together renewable energies and Enedis, part of whose capital would be listed. There are variations, such as perhaps the creation of an "EDF Azur" with hydraulics, but it is certain that a merger with Suez would completely reshuffle the cards.
Large debt
Then, and this is the reason why the government wants to reorganize EDF while continuing to focus on nuclear power, the public company is drowning in colossal debt. At the end of 2019, the group's indebtedness stood at 41 billion euros and a confidential report from the Treasury Department mentions a figure of 60 billion euros in the short term. EDF could be a white knight, but certainly not a beautiful bride for Suez.
Antin on the lookout
While waiting for this scenario to continue to grow in the brains of Bercy strategists and among the many investment bankers who revolve around Suez, Engie and Veolia, other names of white knights are circulating. The Ardian fund is thus making a comeback after doing a little bit of everything on the file a few weeks ago. The name of the first French infrastructure fund, with 15 billion euros in assets, Antin Infrastructure Partners is also circulating.