Suez and Veolia shares rose significantly on the Paris Stock Exchange on Monday. Investors were happy to hear that the two main French utility companies had reached an agreement on a merger. The mood in European equity markets was more restricted. Investors have not taken any risks in anticipation of the quarterly earnings season that starts this week. Expectations for the company’s results are high now that many stock market indices have reached record levels.
In Paris, Suez fortune rose 7.6 percent at 19.85 euros a share. After months of bargaining, Veolia (plus 8.6 percent) finally reached an agreement to acquire its industrial counterpart. Veolia already owns nearly 30 percent of the shares of Suez, which has long been resistant to its rival’s takeover. Veolia will acquire the rest of the Suez shares for 20.50 euros a share. This means that the entire Suez Canal is estimated at about 13 billion euros.
The AEX index on Beursplein 5 posted a 0.2 percent drop at 711.66 points at noon. The MedCap index fell 0.4 percent to 1038.49 points. Stock markets in Frankfurt and Paris rose slightly. London lost 0.3% despite the UK coronavirus measures eased.
Randstad
Broadcaster Randstad had to contend with the advice cut by JPMorgan and it was the biggest drop for AEX, with a loss of 1.8 percent. ING lost 1 percent pending the results of major US banks, due out later this week. Telecom company KPN and DSM specialty chemicals led profits of about 1 percent. Meal delivery company Just Eat Takeaway won 0.7 percent. The owner of Thuisbezorgd.nl will open the books on Tuesday.
Fertilizer producer OCI (plus 2.3 percent) took the lead in MidKap. GrandVision won 0.8 percent. The owner of the visual chain, Pearle, will sell the Rotter y Kraus business in Chile to seek approval from the country’s competition authority to merge with EssilorLuxottica. According to the Franco-Italian eyewear group, approval is now required only in Turkey to acquire GrandVision. AMG, which specializes in metals, finished off with a negative of more than 2 percent. In London easyJet and Ryanair fell 1.8 and 2.2 percent. The two budget companies were removed from the buy list by HSBC analysts.
The euro reached $ 1.1904, up from $ 1.1887 on Friday. A barrel of US oil is now 0.2% at $ 59.45. Brent oil price rose 0.4 percent to $ 63.20 a barrel.
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