Wednesday 8 December 2021

CMA investigates Veolia/Suez merger

The merger of two of the largest suppliers of waste management services Veolia and Suez could lead to a loss of competition in the industry according to the Competition and Markets Authority (CMA).

The CMA has been investigating complaints that the transaction could lead to councils paying higher prices for waste management, with these costs being pushed onto taxpayers.

It has raised concerns that the merger would not only lead to higher prices but also a lower quality service across the UK; Veolia and Suez are two of the already very small number of companies that can deal with the largest waste management contracts.

Waste and water management services for large businesses and councils are already somewhat limited and the CMA warns the move may lead to a hike in prices as the market is monopolised.

Andrea Coscelli, Chief Executive of the CMA, said: “Councils spend hundreds of millions of pounds on waste management services. Any loss of competition in this market could lead to higher prices for local authorities, leaving taxpayers to foot the bill and reduced innovation to achieve net zero targets.

“Everyone in the UK uses waste and recycling services in some way, it is therefore vital that this deal is subject to more detailed scrutiny if our concerns aren’t addressed.

“The CMA also identified competition concerns in several water management markets, where insufficient competition after the merger could mean that industrial customers would also have to pay higher prices.

He said that both companies have five working days to submit proposals to address the CMA’s concerns and if they do not a second investigation will ensue.

Energy Live News has contacted Veolia and Suez for a response.