The go-ahead from the UK Antitrust has arrived for the merger between Suez and Veolia. However, the latter will have to meet certain conditions. The Competition and Markets Authority has asked Veolia to sell 3 companies in order to preserve competition. After an in-depth investigation into the merger of the French giant in the water and waste management sector with its competitor Suez, the Authority has in fact found “Competition Issues in different markets”.
According to the CMA, Veolia will have to sell "substantial parts" of the management services business waste of Suez in the United Kingdom; of the activity of maintenance services and management of theindustrial water of Suez in the United Kingdom and the European business of the mobile water services of Veolia.
In fact, these are businesses which, according to the CMA, represent an overlap between the competing operations of Veolia and Suez in the United Kingdom.
A Veolia spokesman indicated that of the three requested transfers, two have already been prepared. In fact, on August 8, Veolia announced the sale of the Suez waste business in the United Kingdom to the Australian Macquarie Group for a sum of 2,4 billion euros. The Cma will determine the terms of the sale, as will the sales of the 2 water services businesses.
“Local authorities' budgets are already under pressure and it is likely that this agreement will lead them to pay more and receive a lower quality service – he commented Stuart McIntosh, chair of the CMA inquiry group “The negative impact would eventually fall on taxpayers at a time when they are feeling the pressure of the cost-of-living crisis”.
“Given our concerns about the merger, we have concluded that Veolia needs to sell the majority of the UK operations it took over when it acquired Suez. We will now work with Veolia to ensure that the appropriate buyers are found so that the businesses, municipalities and, ultimately, taxpayers do not suffer losses”
