In its final decision this morning (25 August), the CMA confirmed that Veolia must sell “substantial parts” of the merged business in the UK, ruling that the merger would lead to competition concerns in several waste markets (see letsrecycle.com story).
This includes Suez’s UK waste management services business as well as its UK industrial water operation and its European mobile water services business.
The CMA reasoned that these businesses “make up almost all of the overlap” between Veolia’s and Suez’s competing operations in the UK.
The CMA’s final decision draws a line under this chapter
- John Scanlon, Suez recycling and recovery UK
‘Chapter’
John Scanlon, chief executive of Suez recycling and recovery UK said in a statement given to letsrecycle.com that “the publication of the CMA’s final decision draws a line under this chapter of our company’s history”.
He continued: “I’d like to thank the teams at the Competition and Markets Authority and Veolia, and of course my Suez colleagues, for their hard work and diligence during the investigation.
“With our new ownership set to be confirmed before the year is out, this will come at a pivotal moment for our sector, and I look forward to playing our part in the UK’s transition to a more resource efficient, circular economy, delivering on our commitment to people and planet.”
Background
However, the ruling doesn’t completely take the CMA out of the equation yet, as the body said it will determine the conditions of the sale, as well as the sales of the two water services businesses.
“The CMA will also need to approve the purchasers of each business before the completion of each sale,” today’s ruling said.
The regulator released its provisional ruling in May, following which Veolia has taken the steps towards selling the Suez UK waste business.
It agreed a €2.4 billion (£2.02 billion) deal with Macquarie for Suez’s UK’s recycling assets (see letsrecycle.com story), but the deal could still be matched by the ‘New Suez’ (see letsrecycle.com story).
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