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Veolia / Suez merger to undergo in-depth review in UK

Suez and Veolia logos
The CMA now has until 6 June to release a decision.
21.12.2021 − 

The British Competition and Markets Authority (CMA) announced on Tuesday that it will conduct a "phase 2" investigation of Veolia's planned takeover of competitor Suez. With concerns remaining after the initial review that the merger "could result in a substantial lessening of competition within the UK's water and waste management sectors", the body will now carry out a detailed examination of the deal's impact on UK markets. The CMA has until 6 June 2022 to issue its decision and to set out the conditions under it will allow the merger of the environmental services behemoths to go forward.

Earlier this month CMA had released a statement saying that it was minded to refer the transaction for a phase 2 investigation. It gave the parties five working days to submit proposals allaying its concerns. Veolia had notified the CMA on the final day of the submission period that it would not be offering any such undertakings, the CMA said in its referral decision.

The British competition watchdog is one of only three authorities which have yet to approve the Veolia / Suez merger, Veolia said last week. On 14 December, EU Commission's DG Competition had cleared the way for the deal. A day earlier, France's financial markets authority AMF had also set a closing date for the takeover bid of 7 January 2022. At that time, Veolia CEO Antoine Frérot said his concern was entering final phase of its efforts to takeover Suez and said the merger was "only a matter of weeks away".

Our Premium Subscribers can access further coverage of the CMA's concerns regarding the British waste management markets in our E-Paper here:

E-Paper EUWID Recycling and Waste Management

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