Australia’s Cleanaway to buy Suez’s local recovery, recycling unit for $1.93 billion

(Reuters) -Australia’s Cleanaway Waste Management said on Tuesday it would acquire the local recycling and recovery business of French waste and water management firm Suez for A$2.52 billion ($1.93 billion).

The business includes several infrastructure assets, a workforce of more than 2,000 employees and a fleet of more than 1,000 vehicles, Cleanaway said. It had been in talks with Suez for buying its local assets since March.

However, hurdles for the deal remain as Paris-based Suez is involved in a takeover tussle with domestic rival Veolia.

Suez in February rejected an 11.3 billion euros ($13.35 billion) takeover bid by Veolia, and since then, the two companies are struggling to agree how to carve up Suez’s business and have clashed in court over it.

Suez may terminate the acquisition by May 6 in case it reaches a deal in principle for a takeover of the firm by Veolia, Melbourne-based Cleanaway said.

In case a superior offer for the assets is made and not matched by Cleanway, then Suez may terminate the deal earlier.