The completion of the sale of Suez’s former UK waste activities was announced yesterday evening (5 December) by Suez. Veolia confirmed in a short statement that the £2 billion proceeds “represent an attractive valuation” and will “significantly reduce its debt by providing it with additional investment capacity”.
With the Suez waste activities under its belt, Suez will become the third largest waste recycling and recovery company in the UK, behind Veolia and Biffa, with a “unique position in developing new waste treatment activities in line with recent national regulatory developments”.
Suez recycling and recovery UK has a portfolio of more than 25,000 industrial and municipal customers, employs around 6,000 people and generates turnover of more than £900 million.
The deal enables Veolia to comply with an order from the Competition and Markets Authority, which said the merged companies would lessen competition in the UK market. Veolia said it has now completed €3.4 billion of divestments from the Suez business.
John Scanlon, Suez recycling and recovery UK’s CEO, said: “As a business we have a wealth of expertise and knowledge in delivering new treatment infrastructure and transforming services, which we look forward to sharing with our new colleagues at Suez.
“Our return to the Group comes at a pivotal time for the UK resources sector, with the long-awaited detail of government reforms to extended producer responsibility and consistency in collections expected soon.
“Going into 2023 we are ready to rise to the challenge of delivering the infrastructure and services needed to make these reforms reality and move the UK further along the path to net zero.”
Integrated
Suez explained that the UK business operates along the entire waste value chain, from collection to processing to energy recovery.
It added that the company “occupies a unique position when it comes to new ways of treating waste in accordance with national policy and regulatory reforms”.
The acquisition of its UK business also allows the company to “speed up international growth” and accelerate the growth of waste management activities, in particular by enhancing the group’s expertise in new treatment methods, such as material re-use, recycling, the creation of alternative fuels and energy from waste.
Sabrina Soussan, Suez’s chair and CEO, said the re-integration of SUEZ recycling and recovery UK into the business “reaffirms its commitment to one of the most important waste markets in Europe”.
She said: “Suez recycling and recovery UK has progressively transformed itself over the last few years with the development of recycling and waste recovery, particularly energy recovery.
“In a market that is undergoing major changes, this expertise will considerably strengthen the group’s leadership position in new waste treatment methods wherever we are.”
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