Veolia had to sell three “substantial parts of the merged business” to comply with competition law in Britain.
The British Competition Authority (CMA) issued its conclusions on Thursday on the takeover of Suez by Veolia, a “green lightin the eyes of the environmental services giant, which must however give up taking over three entities. The British competition policeman concluded that Veolia should sell three “substantial parts of the merged companyto comply with UK competition law.
Are concerned “Suez’s waste activities in the UK», «Suez’s industrial water operation and maintenance services activities in the United Kingdom” as well as “Veolia’s mobile water services in Europe“. Veolia, which had taken the lead in already committing to these disposals, stresses that these conclusions are a “green lightto the absorption of Suez.
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“Green light”
“Today’s announcement is truly a green light from the UK Competition Commissionto the merger with Suez, a spokeswoman for Veolia rejoiced with AFP, explaining that of the three sales required, two had already been signed. Regarding the takeover of Suez’s waste business in Great Britain, Veolia announced in early August an agreement of 2.4 billion euros with the Australian asset manager Macquarie Asset Management.
However, this acquisition remains subject to the approval of the CMA. Furthermore, the “new Suez“, an independent entity grouping the assets that Veolia could not chew because of antitrust laws, is also in the running to buy these waste units. The group has undertaken to study in detail the terms of the agreement concluded with Macquarie, following which it will decide whether or not to exercise its right of first refusal.
Regarding mobile water services in Europe, this sale has already been agreed with the European competition authority, recalls Veolia, and a sale agreement was signed in early May with Saur for around 190 million euros. So remains thesmall operation and maintenance activity in the industrial waters of Suez in the United Kingdom», «not at all significant“Compared to waste activity, Veolia said on Thursday.
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The world number one in water and waste management succeeded in January to absorb Suez, after more than a year of battle. This operation at 13 billion euros allowed it to go from 180,000 to 230,000 employees, with a turnover of 37 billion euros, or an additional 10 billion. The “new Suez» independent was maintained, reduced by 60%, and delisted. Consisting of most of the hexagonal assets of the historic Suez, it has also kept some activities in Morocco, Italy and China.
Taken over by a consortium of shareholders (the Meridiam and GIP funds, with the Caisse des dépôts and CNP Assurances), the group has since the takeover notably acquired the largest waste management company in South Africa. Its management must present its development strategy in the fall.