Suez and Veolia Environnement climb on merger deal in principle

Suez shares rose 7% and Veolia Environnement added 4% as the two sides said they've reached a deal in principle on a merger, with Veolia to pay €20.50 per share. The two groups have agreed to enter into definitive merger agreements by May 14. Suez won't dispose Australian assets and will deactivate its Dutch foundation, the companies said. Only last week Veolia had said Suez was doing everything it could to make it impossible for a deal to be reached.