Veolia is selling Suez’s UK waste business to Macquarie Asset Management for €2.4bn to help address antitrust concerns.
In April last year, French waste management firms Veolia and Suez announced a €13bn merger subject to obtaining regulatory and competition approvals.
Veolia said the disposal of Suez Recycling and Recovery UK Group to Macquarie allows it to effectively address the main concerns of the UK Competition and Markets Authority (CMA).
“It remains subject to the CMA’s approval and to the right of first refusal granted by Veolia to the new Suez at the time of the combination in 2021.”
Following completion of this antitrust remedy, Veolia will remain a major player in the UK waste management market with revenues of approximately €2bn, Veolia said.
After the disposal of the remedies agreed with the European Commission and the signature of the agreement with Macquarie Asset Management, almost all of the antitrust divestitures, which now amount to €3.4bn, will have been finalised, the company said.
Estelle Brachlianoff, CEO of Veolia, said: “We are very satisfied with this transaction, which is being carried out under excellent conditions that once again demonstrate the attractiveness of the environmental services business and the relevance of our proposal for remedies to the CMA.
“It will create significant value and strengthen our investment capacity in strategic markets. The valuation of these assets reflects both the initial price and the synergies expected from the combination, in line with all of the disposals carried out in the frame of the antitrust clearances, which are higher than the acquisition price of Suez.
“Following this transaction, Veolia will remain a major player in the waste sector in the United Kingdom and, more broadly, in the environmental services market in the region, which remains strategic for the group.”
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