Cleanaway (ASX:CWY) readies finances to acquire $501m waste assets

Company News

by Michael Luu

Cleanaway Waste Management (ASX:CWY) has attained the necessary debt facilities to fund the acquisition of French waste solutions company Suez’s assets in Sydney, according the company’s announcement on Tuesday morning.

The $5 billion Melbourne-based company expects to complete this transaction by the end of FY22, pending board approval.

Suez’s portfolio of Sydney assets is valued at $501 million and comprises of two landfill locations and five waste processing facilities.

The purchase is the Australian waste and recycling specialist’s alternative plan to a previous bid for Suez’s nationwide assets in Australia. The transaction fell through as French compatriots Veolia and Suez sealed a merger deal. If successful, the acquisition is expected to go through just before the the merger takes effect.

Veolia has until the end of 2022 to secure all financial means and meet all conditions of the takeover agreement. Should the deal break down, Cleanaway will be back in the game as the first in line to acquire Suez Australia. ???

Shares in Cleanaway Waste Management (ASX:CWY) last traded at $2.63

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