EU gives ‘green light’ for Veolia’s € 13 billion merger with Suez

The “green light” for the merger of the French water and waste management company Veolia with the competing company Suez, amounting to 13 billion euros, on the condition of selling certain assets of the two companies in order to allay competition concerns, was given on Tuesday. European Union Competition Commission.

The aim of the merger is to create a global group able to better compete with Chinese competitors.

The European Commission has said that the extensive asset sale package to which the two companies have committed has fully allayed its concerns about the effects of the agreement on competition.

“The Commission ensures that this transaction does not adversely affect competition in the water and waste markets, two areas that are crucial to the Europe Green Agreement and the circular economy,” EU Competition Commissioner Margaret Westager said in a statement.

The remedies proposed by the two companies include the spin-off of Suez’s French water and waste services and some of its other international assets and their contribution to a new entity called New Suez, of which Meridiam and Global Infrastructure Partners, the state-owned Caisse des Depots and CNP Assurances.

Veolia will also sell most of its industrial water treatment assets in France, as well as mobile water services companies in Europe, while Suez will divest all its industrial treatment assets. hazardous waste. The two companies will also sell part of their hazardous waste landfill activities.

It is noted that Veolia had expressed its optimism as early as November 26 that its merger with Suez would receive the “green light” of European antitrust regulators.