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Cleanaway's (ASX: CWY) $2.52 billion bid to acquire the Australian recycling and recovery business of France's Suez Groupe (Suez R&R) has fallen through today, but the waste management company won't walk away empty handed.
CWY's bid has been complicated after Veolia Environnement reached an in-principle agreement to take over the entirety of Suez.
This triggered a clause that will see the original deal scrapped by 6 May, and will instead allow Cleanaway to acquire a portfolio of waste processing assets in Sydney for $501 million.
This consolation prize will let Cleanaway acquire two landfills in Sydney and five transfer stations with processing capacity and capabilities. In CY20 the Sydney assets generated net revenue of $193.1 million and normalised EBITDA of $72.9 million.
"Cleanaway is excited to acquire these high-quality post collection assets from Suez," CWY chief operating officer Brendan Gill said.
"These assets are strategically located across the Sydney metro area and complement Cleanaway's existing operations in Sydney."
"The company expects the acquisition to complete in the second quarter of CY22, and will provide further information in relation to the proposed funding of the purchase "in due course".
CWY's proposed acquisition is subject to Australian Competition and Consumer Commission approval.
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Business News Australia
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