The French environmental services giant Veolia will sell the waste activities of Suez, a group that it largely absorbed, in the United Kingdom for 2.4 billion euros, in order to "
meet the main obligations of the UK competition authority
.
Read alsoVeolia's profits driven by the heat wave and the successful integration of Suez
"
Veolia announces the signing of a unilateral purchase agreement by which Macquarie Asset Management irrevocably undertakes to acquire 100% of the capital of Suez Recycling and Recovery UK Group Holdings Ltd, bringing together Suez's waste activities in the United Kingdom
" , the group said in a statement on Monday.
Fears of price increases
The completion of this transaction "
makes it possible to provide an effective response to the main concerns of the British competition authority (Competition and Markets Authority)
", underlined the French giant of environmental services (water, waste, energy) .
The British competition authority had indeed opened a so-called in-depth investigation into the merger between Veolia and its old rival Suez, and had expressed its “
concerns
” in mid-May in a preliminary report.
In December, the competition policeman had already expressed concern that the merger of French water and waste management groups could result in an increase in sanitation prices in the United Kingdom.
"
We are very satisfied with this transaction, which is taking place under excellent conditions, which once again demonstrate the great attractiveness of the activities of environmental services and the relevance of our proposal for remedies to the CMA
", welcomed Estelle Brachlianoff, CEO of Veolia.
“
It will enable strong value creation while strengthening our ability to invest in strategic markets
,” she added.
The acquisition by the Australian asset manager Macquarie Asset Management remains however still “
subject to the approval
” of the CMA, as well as to “
the lifting of the right of first refusal granted by Veolia to the new Suez
”, renamed Vigie.
"
Following this operation, Veolia will remain one of the major players in the waste sector in the United Kingdom and more broadly in the area's environmental services market, which remains strategic for the group
", is it stated in the press release.
At the end of a takeover bid and several months of battle, Veolia succeeded in early January to absorb Suez thanks to a 13 billion euro operation, allowing it to go from 180,000 to 230,000 employees, with a figure of business of 37 billion euros, or an additional 10 billion.
