Suez agrees to sell Australian waste activities to Cleanaway

Veolia considers Suez's Australian waste activities "strategic".
07.04.2021 − 

French environmental group Suez wants to sell its waste management activities in Australia for AUD2.52bn (around €1.63bn) to Cleanaway, the Australian market leader. The two companies announced the signing of a sale agreement on 5 April. However, Suez has the right to back out of the transaction if it reaches agreement by 5 May on the main terms of a tender offer for selling the entire Suez group. Moreover, Suez can also withdraw from the deal at any point prior to 21 April if it receives a higher offer for the Australian activities from “any third party, including Veolia” and Cleanaway does not match it.

Even if the planned acquisition of Suez’s Australian waste management business does not go through, Cleanaway will reportedly acquire a portfolio of selected Suez assets in the Sydney region for AUD501m (around €325m). These activities comprise two landfills and five transfer stations. Suez sees no conflict here with a potential takeover by Veolia, and said its competitor would have trouble retaining them for anti-trust reasons.

Further coverage of Suez's asset disposal plans and the state of play in the struggle for control of the French environmental services giant appear in EUWID Recycling & Waste Management 07/2021. Premium subscribers can read the articles in the E-paper edition as of noon on 8 April.

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