Cleanaway (ASX:CWY) dealt major blow in purchasing Suez Australia

Company News

by Michael Luu

Cleanaway Waste Management (ASX:CWY)’s $2.5 billion dollar bid to secure Suez’s Australian recycling business has been dealt a major blow, following Suez’s agreement in-principle to merge with French compatriot Veolia.

The Australian waste solutions firm was initially ahead of Veolia in the race for Suez’s Australian assets, having agreed to the terms on April 6. Veolia’s U-turn means Cleanaway (ASX:CWY)’s proposed acquisition will be terminated by May 6. However, it will open the door for Cleanaway to purchase a $501 million portfolio of post collection assets in Sydney.

Shares in Cleanaway Waste Management (ASX:CWY) last traded at $2.47.