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KKR has received EU clearance for Viridor take-over

12.05.2020 − 

The European Commission's Competition Directorate-General sees no obstacles to the sale of the British waste company Viridor to the private equity firm KKR. The proposed acquisition would "raise no competition concerns, given that there are no horizontal or vertical overlaps between the companies' activities", the Commission announced last week. The transaction was examined under the simplified merger review procedure.

The shareholders of Pennon Group, Viridor's parent company, have yet to approve the sale. An annual general meeting will be held on 28 May. The company expects the transaction to be completed in the summer.

Pennon announced the sales agreement in March. The deal puts Viridor's value at £4.2bn on a cash-free, debt- free basis, equivalent to around €4.8bn. In the 2018/19 financial year (31 March), the most recent financial year for which figures are available, Viridor generated a pre-tax profit of £88.5m on sales of £853m. The waste company employs around 3,000 people at more than 320 sites in England, Scotland and Wales.

KKR was the owner of the German "green dot" company Duales System Deutschland AG (DSD) from 2005 to 2010. The financial investor was also a member of the consortium that took over the Dutch waste company Van Gansewinkel in 2007 and held it until 2015. In 2018, KKR announced the acquisition of a 60 percent stake in the Indian waste management and environmental services company Ramky Enviro Engineers.

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