On 27 January 2022, Veolia completed its acquisition of all of Suez. While this was ratified in Europe, the CMA ruled that the deal would lessen competition in the UK and as such Veolia must sell Suez’s UK waste and water businesses.
The CMA published two documents this morning (3 November), which set out the terms of any sale. One was a notice of acceptance after both Veolia and Suez submitted ‘final undertakings’, setting out how it will meet the CMA’s order.
There was also a copy of the final undertakings, which were the same as the CMA set out in August.
Stuart Mackintosh, group chair of the CMA, said: “The CMA now accepts those final undertakings as given by the parties.
“The final undertakings now come into force and the reference is finally determined.”
This does not mean that the CMA has yet agreed to the sale of Suez’s UK waste division back to the new Suez (see letsrecycle.com story), but that it has agreed to the terms of a prospective sale.
The agreement of terms submitted today was from Veolia and ‘Vigie’, the ‘temporary’ name given by Veolia to the assets it bought from Suez .
Terms
As part of the deal, Veolia has agreed to provide the CMA with a shortlist of potential purchasers for each of the divestment businesses for the CMA’s formal approval, “as soon as practicable”.
This will also include “sufficient information regarding each potential purchaser for which Veolia seeks formal approval”.
While Veolia has agreed to sell the UK waste division of Suez to Suez S.A (the new Suez), this is still to be approved. Macquarie had also previously bid.
“The CMA will advise Veolia whether any potential purchaser is an approved purchaser within a reasonable period,” the terms add.
Veolia has also agreed that it will not look to acquire any other parts of the business for a period of 10 years after ‘final disposal’ and will continue to run the businesses separately until final disposal is reached.
No “key staff” are able to transfer between the businesses, with all reasonable steps taken to encourage key staff to remain with each divestment business.
Veolia will also fund a monitoring trustee to oversee ongoing compliance with the CMA’s terms.
Each party undertakes that should it be aware of any circumstances which may materially impact its ability to comply with its obligations under these final undertakings, it will notify the CMA within two working days.
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