Cleanaway enters agreement to acquire Suez R&R Australia
In Australia, Cleanaway Waste Management Ltd (Cleanaway) has announced that it has entered into an agreement with France-headed waste management and resources company SUEZ Groupe S.A.S to acquire SUEZ R&R Australia for AU$2.52 billion. The agreement is subject to terms and conditions including the outcome of a tender offer on SUEZ by Veolia Environnement S.A.
Cleanaway is Australia’s largest total waste management, industrial and environmental services company with a network of state-of-the-art facilities, transfer stations, engineered landfills, liquid treatment plants, and refineries.
The SUEZ R&R Australia Acquisition is subject to finance on terms satisfactory to Cleanaway and various other conditions.
According to SUEZ, the agreement is fully in line with the SUEZ 2030 strategic plan. In addition, since SUEZ is subject to a tender offer by Veolia Environnement S.A. filed on February 8, 2021, the conditions signed with Cleanaway for the Recycling and Recovery business in Australia are in line with SUEZ’s proposal to Veolia on March 21, 2021.
It specifically allows for the possibility of Veolia taking control of this asset, through a takeover offer, on the basis of SUEZ proposal to Veolia on March 21, 2021, or through a direct purchase of the Australian R&R activities.
Under the agreement, in certain circumstances and conditions, two landfills and five transfer station assets in the Sydney area would still be sold to Cleanaway for AU$501 million.