French utility Veolia agrees to divest Suez's UK waste business to Macquarie for €2.4B

Aug. 08, 2022 3:25 AM ETVeolia Environnement S.A. (VEOEY), VEOEFBy: Meghavi Singh, SA News Editor

Heavy industrial waste bin owned by Veolia Environmental

Ceri Breeze/iStock Editorial via Getty Images

  • Veolia (OTCPK:VEOEY) has executed a unilateral put agreement whereby Macquarie Asset Management irrevocably undertakes to acquire 100% of the share capital of Suez Recycling and Recovery UK Group, regrouping Suez waste activities in the UK.
  • The sale proceeds will amount to ~€2.4B represent an attractive valuation of 16.9 times 2021 normalized EBITDA.
  • The disposal of Suez's UK waste business addresses the main concerns of the UK competition authority.
  • The reduction in leverage to well below 3x will provide Veolia with additional capacity to reinvest in its strategic projects.
  • Following completion of this antitrust remedy, Veolia will remain a major player in the UK waste management market with revenues of approximately €2 billion.
  • Less than a year following the closing of the Suez takeover bid, the antitrust divestment programme is close to full completion. It represents a cumulative value of approximately €3.4B and it has been carried out at valuation levels that allow for immediate and substantial value creation.

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