SUEZ has announced it has completed the acquisition of its former waste management assets in the UK from Veolia.
“With a turnover of more than £900 million and a leading position on the UK market, one of the major businesses acquired by Veolia is now back with SUEZ,” it said in a press statement.
Sabrina Soussan, SUEZ Chair and CEO, said: “With the reintegration of SUEZ recycling and recovery UK, SUEZ reaffirms its commitment to one of the most important waste markets in Europe.
“SUEZ recycling and recovery UK has progressively transformed itself over the last few years with the development of recycling and waste recovery, particularly energy recovery. In a market that is undergoing major changes, this expertise will considerably strengthen the Group’s leadership position in new waste treatment methods wherever we are.”
The acquisition and reintegration follows a takeover bid of SUEZ recycling and recovery UK by Veolia and the subsequent “competition concerns” raised by the UK’s Competition and Markets Authority (CMA).
Veolia and Suez are two of the largest suppliers of waste management services to councils and businesses in the UK and global leaders in the sector and the transaction is being reviewed by a number of competition authorities globally.
Our return to the Group comes at a pivotal time for the UK resources sector, with the long-awaited detail of government reforms to extended producer responsibility and consistency in collections expected soon
Both companies are active across the waste management supply chain from the collection of waste to the operation of facilities for composting and energy recovery and landfill sites.
The companies also supply water and wastewater management services to industrial customers.
The CMA received a number of complaints from customers and other market participants during its investigation and it has identified a number of “competition concerns” that could lead to councils paying higher prices, with a knock-on effect on taxpayers.
“Major strategic step”
The acquisition of SUEZ recycling and recovery UK is a “major strategic step” for the Suez Group, it said. It says the move will pave the way to accelerate the growth of waste management activities, in particular by enhancing the Group’s expertise in new treatment methods (material re-use, recycling, creation of alternative fuels and energy-from-waste); and speed up the international growth and the increase in the share of revenues from international business from the current 25% to around 40% by 2027.
This step follows the acquisition last October of EnviroServ, the leading waste management company in South Africa.
This acquisition brings around 6,000 employees into the SUEZ workforce. The business they operate generates an annual turnover of more than £900 million.
John Scanlon, SUEZ recycling and recovery UK CEO added: “As a business we have a wealth of expertise and knowledge in delivering new treatment infrastructure and transforming services, which we look forward to sharing with our new colleagues at SUEZ.
“Our return to the Group comes at a pivotal time for the UK resources sector, with the long-awaited detail of government reforms to extended producer responsibility and consistency in collections expected soon. Going into 2023 we are ready to rise to the challenge of delivering the infrastructure and services needed to make these reforms reality and move the UK further along the path to net zero.”