The UK’s Competition and Markets Authority (CMA) has announced its decision to refer the merger of Veolia and Suez for an in-depth investigation.
Earlier this month the CMA had said the merger of Veolia and Suez could lead to a loss of competition in the supply of several waste and water management services in the UK. The competition regulator identified competition concerns that could lead to higher prices and lower quality services across waste management activities, as well water management markets in the UK.
Concerning water services, the situation would affect the O&M of water and wastewater treatment facilities for industrial customers, as well as the supply of mobile water services.
The CMA gave Veolia and Suez 5 working days to submit proposals to address the CMA’s concerns
The CMA gave Veolia and Suez 5 working days to submit proposals to address the CMA’s concerns. After Veolia informed the competition regulator that it would not offer such proposals, the CMA decided to refer the merger to a phase 2 investigation. The terms of reference of such procedure set a deadline of June 6, 2022, to investigate and report whether the merger situation is expected to result in a substantial lessening of competition in UK markets.
The proposed acquisition of Suez by Veolia is being reviewed by competition authorities globally, and last week received approval by the European Commission after Veolia offered a commitments package that eliminated the competition concerns raised by the Commission.
