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CWY - Cleanaway Waste Management News Story

A$2.8 0.0  1.1%

Last Trade - 7:10am

Large Cap
Market Cap £3.18bn
Enterprise Value £3.72bn
Revenue £1.28bn
Position in Universe 99th / 1907

BREAKINGVIEWS-Capital Calls-Suez waste sale throws garbage at Veolia bid

Tue 6th April, 2021 10:43am
(The author is a Reuters Breakingviews columnist.  The opinions
expressed are their own.)
    LONDON, April 6 (Reuters Breakingviews) - Concise insights
on global finance in the Covid-19 era.
DISPOSABLE SUBJECT. Suez  SEVI.PA  is aiming a desperate garbage
pail at Veolia’s  VIE.PA  11.3 billion euro takeover bid. The
French recycling and water company on Tuesday agreed
 to sell its Australian waste unit to local rival Cleanaway
 CWY.AX  for A$2.5 billion. A multiple of roughly 13 times the
division’s trailing EBITDA is broadly in line with previous
deals. But it undermines Suez Chief Executive Bertrand Camus’
defence that Veolia wants to break up its Gallic rival.
    Suez will sell some Australian assets for A$501 million even
if Veolia boss Antoine Frérot concedes to his target’s demand by
raising his 18 euros per share cash bid*:nL8N2LK2BO to 22.50
euros. That is likely to frustrate Frérot as Australia is part
of his plans to realise 500 million euros in annual cost savings
from the merger. It’s not clear that stock market authorities
will stop Suez: last week French regulators criticised its use
of a poison pill mechanism but declined to impose any penalties.
The scorched-earth approach may just work. (By Christopher

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| Editing by Peter Thal Larsen and Oliver Taslic)
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