Veolia Offers $3.5bn for Engie's Stake in Suez

French water and waste utility Veolia has offered to buy a 29.9% stake in its smaller peer Suez from French gas and power group Engie for €2.9bn ($3.5bn) in cash, it said on August 30.

The offer, which will remain on the table until September 30, values the shares at €15.50 apiece, representing a 50% premium to Suez's closing price on July 30. If Engie accepts it, Veolia plans to file another offer for remaining Suez shares.

Veolia CEO Antoine Frerot said the planned acquisition would help the company reduce its environmental impact.

"This historic opportunity will enable us to build the French world champion in ecological transformation, while accelerating international development and strengthening the new entity's capacity for innovation," he said.

Engie has not commented on the offer.