Suez keen to buy back UK business ahead of Veolia competition ruling
French waste and water firm Suez is gearing up to buy back its former UK business.
The UK’s competition watchdog is set to make a judgement next month on whether rival Veolia can take over the arm.
The Competition and Markets Authority (CMA) had warned last month that the merger could result in council bills in the UK increasing if there was a reduction of options for waste treatment and collection providers.
Now, Suez is reported to have first refusal on the unit in the event the regulator urges a sale, two sources told The Financial Times. This would be at a price set by Veolia, the newspaper said.
One of the newspaper’s sources said Suez was eager to retain the company, with a deal worth several hundred million pounds.
A deal for Veolia to acquire the UK unit was inked in a €13bn agreement in 2021, after an intense takeover battle between the two rival firms.
Suez retained most of its operations in France and continued to operate as its own entity with new investors.
Veolia and Suez are two major players and offer waste management services to councils and businesses in the UK, including services from the collection of waste to the operation of facilities for composting and incineration and landfill sites, CityA.M. reported earlier this year.
At the time, CMA boss Andrea Coscelli said: “Councils spend hundreds of millions of pounds on waste management services.
“Any loss of competition in this market could lead to higher prices for local authorities, leaving taxpayers to foot the bill, and reduced innovation to achieve net-zero targets.
“Everyone in the UK uses waste and recycling services in some way; it is therefore vital that this deal is subject to more detailed scrutiny if our concerns aren’t addressed.”