The French utility Veolia Environment divested its waste business Suez in UK Australian style Macquarie Group for a figure of 2,4 billion euros, with the aim of solving the problems antitrust which arose after the merger between Veolia and Suez.
“Following this transaction, Veolia will remain a major player in the UK waste sector and more broadly in the environmental services market in the region, which remains strategic for the group,” he said. Estelle Brachlianoff, CEO of Veolia.
The French multinational has operations in three main areas of services and utilities traditionally managed by public authorities: water management, waste management and energy services.
VEOLIA: ALL DISPOSAL WITHIN ONE YEAR OF THE ACQUISITION OF SUEZ
Sale of Suez UK waste business addresses major concerns of theUK competition authority CMA, explains the Group, adding that after the adjustments agreed with the European Commission and the signing of the agreement with Macquarie Asset Management, almost all of the divestitures will be finalized within a year of the acquisition of Suez.
This is a unilateral purchase agreement whereby Macquarie Asset Management "irrevocably commits to acquire 100% stake in Suez Recycling and Recovery UK Group Holdings, bringing together Suez's UK waste business," the statement said. group.
Brachlianoff also said she was "very confident" about getting all the regulatory approvals related to the deal and added that a small sale of assets in the industrial water sector is still needed in Britain. "Almost all the sales requested by the Antitrust will be finalized less than a year after the acquisition of Suez," the company specified. The sales, for a total of 3,4 billion euros, will also involve an important one debt reduction of Veolia, which rose at the end of June to 22,4 billion euro from 13,8 billion the previous year.
Il stock on the Paris Stock Exchange rises by 2% to 24,48 euros.
VEOLIA: WHERE WILL THE NEW INVESTMENTS GO
The French utility is also investing in fast-growing sectors such as hazardous waste treatment and plastic recycling. Last week Veolia Environnement (EPA: VIE) had released the data for the second quarter showing earnings per share of 0,29 euros with revenues of 9,2 billion.
In December last year, Veolia and Suez won EU antitrust approval for their €13bn merger after a months-long dispute that also resulted in lawsuits and Suez's intention to separate its French water business from Veolia, a hypothesis later abandoned after the two companies reached an agreement, closed on January 7 with Veolia which controls 86% of Suez.
