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Suez, Canada's CDPQ buy GE Water for €3.2 billion

New Delhi : Suez Environnement has announced the acquisition of GE Water & Process Technologies along with strategic partner CDPQ of Canada, a move that will establish the French water major as the leading industrial water solutions and services provider.

CDPG (Caisse de dépôt et placement du Québec) is one of Canada's leading institutional investors and manages several public and para-public pension plans and insurance programmes in Quebec. CDPG invests in major financial markets, private equity, infrastructure and real estate, globally.

The GE Water acquisition will be through a 70:30 joint venture between Suez and CDPG.

Suez said the GE Water acquisition was an all-cash transaction for an enterprise value of €3.2 billion. General Electric Company had put GE Water for sale late last year and Suez was since then seen as the leading contender for the unit.

The transaction is expected to close by mid‐2017. Suez said it will then contribute its existing industrial water activities to a newly dedicated industrial water business unit.

The French major has been on an acquisition spree since past few years, picking up assets across the world to bolster its industrial water portfolio. The company, in an internal document, has put industrial water as a dynamic €95 billion market globally driven by strong market and regulatory trends.

GE Water has leading presence across the entire industrial water value chain and has been operating in key growing industrial verticals with large blue-chip client portfolio.

Suez said the acquisition will give it broadened access to industrial clients, with significant scale up effect boosting go‐to‐market capabilities and sales force. It is also expected to generate significant cost and revenue synergies.

"This combination will create further value for both our employees, clients and shareholders. Clients will benefit from the combined knowledge, expertise, geographic footprint and leading edge products and services available. The transaction will also deliver strong value to our shareholders by enhancing SUEZ’ profitable growth profile", said Suez CEO Jean-Louis Chaussade.

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