Veolia said on Thursday that it plans to sell Suez’s UK waste business as it looks to assuage the concerns of the Competition and Markets Authority.
The CMA said last month that Veolia’s acquisition of Suez could reduce competition in the sector and push up prices.
“This drastic decision is an effective response to the intransigence of the CMA,” Veolia said. “Veolia strongly disagrees with their analysis of the concerned markets and deplores the lack of shared understanding of the issues related to our sectors of activity.”
It added: “We regret that the CMA’s analysis will not allow the Group to deploy the full potential of the ecological transformation in the United Kingdom, but it does not reduce our commitment to this region. It does not affect the overall scope of Veolia’s project, whose capacity to create value remains intact.”
However, Veolia also conceded that the disposals will free up “significant” cash flow to finance new developments, particularly in the energy sector, which will enable the company to return to a portfolio of activities balanced between water, energy and waste.
Veolia and Suez agreed a €13bn merger last year.
