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CWY - Cleanaway Waste Management News Story

A$2.8 0.0  1.1%

Last Trade - 07/05/21

Sector
Industrials
Size
Large Cap
Market Cap £3.23bn
Enterprise Value £3.78bn
Revenue £1.29bn
Position in Universe 99th / 1907

Cleanaway to buy Sydney assets of Suez after Veolia merger deal

Tue 13th April, 2021 12:28am
April 13 (Reuters) - Australia's Cleanaway Waste Management
 CWY.AX  said on Tuesday it would buy certain Sydney-based
assets of Suez SA  SEVI.PA  after the French firm agreed to be
acquired by local rival Veolia. 
    Suez and Veolia  VIE.PA  announced their merger on Monday in
a deal valued at about 13 billion euros ($15.44 billion),
following months of wrangling between the two waste and water
management firms.  urn:newsml:reuters.com:*:nL8N2M51FZ
    Last week, Cleanaway said it would acquire the local
recycling and recovery business of Suez for A$2.52 billion
($1.93 billion), a deal that was conditional on the outcome of
the takeover tussle.  urn:newsml:reuters.com:*:nL4N2LY2DU
    The deal was, however, opposed by Veolia, which initiated
legal actions against Suez and Cleanaway in France and Australia
over the sale of the assets.
    Suez may terminate the sale if it reaches an agreement for a
takeover by Veolia, the companies said then. In such a scenario,
Cleanaway will instead buy a portfolio of Suez's post-collection
assets in Sydney under an alternate plan, they added.
    Suez in its statement on Monday said the deal with Veolia
will lead to suspension of ongoing legal proceedings. 
    The assets, comprising two landfills and five transfer
stations, will be acquired for A$501 million, Cleanaway said. 
    Based on the likely timeline for Suez's takeover, the
acquisition is expected to be completed in the second quarter of
2022, it added.
    The acquisition is subject to approval by the Australian
competition watchdog. 
        

($1 = 1.3116 Australian dollars)

 (Reporting by Shruti Sonal in Bengaluru; Editing by Anil
D'Silva)
 ((Shruti.Sonal@thomsonreuters.com; Twitter: @shrutisonal26;))
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