Veolia to sell Suez’s UK waste unit for $2.4bn

Bloomberg

Veolia Environnement SA agreed to sell Suez SA’s waste activities in Britain to Macquarie Group Ltd. for 2.4 billion euros ($2.44 billion) after the country’s antitrust authority raised competition concerns.
Veolia’s announcement, confirming an earlier Bloomberg News report, marks the last step in its acquisition of a large chunk of French rival Suez, which was completed in other parts of the world earlier this year. Demand is growing for water and waste-treatment and recycling services as governments around the globe bring in more stringent rules to fight pollution.
“It’s a very attractive valuation,” Veolia Chief Executive Officer Estelle Brachlianoff said on a conference call. The proceeds will give the firm “room to maneuver on our balance sheet to invest in strategic projects,” she said, citing interest in recycling businesses and water-treatment technologies.
The UK competition watchdog said in May that Veolia’s acquisition of Suez’s business in the country may hurt competition in the water and waste-treatment sector and drive up prices at a time when consumers are already being squeezed. While expressing its disagreement with the regulator’s analysis, Veolia said in June that it would sell the assets.