Cleanaway Waste Management (ASX:CWY)
has entered into an agreement with Suez to acquire Suez R&R Australia for $2.52 billion.
Suez is a recycling and recovery business in Australia.
In addition, Suez is subject to a tender offer by Veolia Environnement S.A. filed on 8 February 2021.
In the event their deal is scrapped, Cleanaway has agreed to purchase $500 million in assets from Suez, which includes two landfill sites and five transfer stations.
The acquisition of Suez R&R Australia is expected to deliver approximately $70 million in annual cost synergies, expected to be realised by FY25.
Suez R&R Australia has aworkforce of more than 2,000 employees, 6 operating landfills including a hazardous waste landfill, 59 collection and depot facilities, 8 organics processing facilities and 2 medical waste facilities, and a fleet of more than 1,000 vehicles.
Shares in Cleanaway Waste Management (ASX:CWY)
are trading 9.1 per cent higher at $2.40.