Macquarie Asset Management has agreed to buy Suez Recycling and Recovery UK Group from Veolia for €2.4 billion (£2.02 billion).
As a result, the main concerns of the UK Competition and Markets Authority (CMA) will be addressed that the takeover of Suez by Veolia would reduce competition in the market. However, this deal with Macquarie will still be subject to CMA approval.
The €2.4 billion price tag values Suez at 16.9 times 2021 normalised EBITDA.
Veolia chief executive Estelle Brachlianoff said: “We are very satisfied with this transaction, which is being carried out under excellent conditions that once again demonstrate the attractiveness of the environmental services business and the relevance of our proposal for remedies to the CMA.
“It will create significant value and strengthen our investment capacity in strategic markets. The valuation of these assets reflects both the initial price and the synergies expected from the combination, in line with all of the disposals carried out in the frame of the antitrust clearances, which are higher than the acquisition price of Suez.
“Following this transaction, Veolia will remain a major player in the waste sector in the United Kingdom and, more broadly, in the environmental services market in the region, which remains strategic for the Group.”