William Eichler 20 May 2022

Regulator finds ‘competition concerns’ with Veolia and Suez merger

Regulator finds ‘competition concerns’ with Veolia and Suez merger  image
Image: Paul Wishart / Shutterstock.com.

A merger of the waste management companies Veolia and Suez could lead to a loss of competition and an increase in costs for local authorities, regulator warns.

The Competition and Markets Authority (CMA) launched an inquiry into the merger deal in October 2021 after concerns were raised about the possible loss of competition within the waste sector.

Veolia and Suez are the only suppliers in the UK who are active across the entire waste management chain, and are two of the few companies that are able to service the largest and most complex waste management contracts with councils.

In December 2021 the deal was referred for an in-depth Phase 2 investigation, which has focused on the eight markets within the waste and water management sector in which the two companies currently compete.

The CMA has provisionally found that the merger raises competition concerns in seven of the eight markets.

The regulator warned that this meant less choice when procuring key waste and water management services, which in turn could lead to an increase in costs which would be passed on to residents through council tax rises.

‘We all use waste and recycling services in some way, so it’s vital that these markets are competitive and provide good value for money. This is all the more important at a time when local authority budgets are already stretched and waste management services have to evolve to help achieve Net Zero targets,’ said Stuart McIntosh, chair of the CMA inquiry group.

‘We’ve heard from a number of customers, including local authorities, who are concerned that this merger could reduce competition in markets where choice is already limited, leading to higher prices or poorer services.

‘We share those concerns and want to make sure that commercial customers and councils don’t get a worse deal – leaving taxpayers to foot the bill at a time when household budgets are already under huge pressure.’

Skate parks are not the only fruit image

Skate parks are not the only fruit

On Go Skateboarding Day, Susannah Walker asks councils and their leisure and park departments to think differently about what facilities they provide for teenagers.
SIGN UP
For your free daily news bulletin
Highways jobs

Travel Information Data Technician

Essex County Council
Up to £25581 per annum
This is an exciting opportunity to work across all aspects of the Integrated Passenger Transport Unit (IPTU). Working with a passionate and dedicated England, Essex, Chelmsford
Recuriter: Essex County Council

Planning Strategy & Implementation Manager

Essex County Council
£57621 - £61410 per annum
Planning Strategy & Implementation Manager Permanent, Full Time £57,621 to £61,410 per annum Location
Recuriter: Essex County Council

Senior Accountant

Telford & Wrekin Council
£39,571 - £42,614
Are you a qualified Accountant looking to take the next step in your career? Telford, Shropshire
Recuriter: Telford & Wrekin Council

Family Assessment Worker

Telford & Wrekin Council
£25,419 to £27,514
We have a great opportunity for a full time Family Assessment Worker in the Parenting Assessment Team. Telford, Shropshire
Recuriter: Telford & Wrekin Council

Neighbourhood Enforcement Officer

Telford & Wrekin Council
£23,023 - £24,920
The post holder will tackle environmental crimes and unlawful parking. Telford, Shropshire
Recuriter: Telford & Wrekin Council

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.