(Reuters) -Australia’s Cleanaway Waste Management said Tuesday that it will acquire a local recycling and recovery business from French waste and water management company Suez for A $ 2.52 billion ($ 1.93 billion).
The business includes multiple infrastructure assets, a workforce of more than 2,000 employees and a fleet of more than 1,000 vehicles, Cleanaway said. It has been in talks with Suez to buy its local assets since March.
However, hurdles to the deal remain as Paris-based Suez is embroiled in a takeover dispute with domestic rival Veolia.
Suez in February rejected Veolia’s 11.3 billion-euro ($ 13.35 billion) takeover offer, and since then, the two companies have struggled to agree on how to carve out Suez’s business and have clashed in court over it.
Suez could stop the acquisition on May 6 if it reaches a principle agreement for Veolia’s takeover of the company, said Melbourne-based Cleanaway.
If a superior bid for assets is made and does not match Cleanway, then Suez may end the deal early.
($ 1 = 1.3067 Australian dollars)
($ 1 = 0.8466 euros)
Reporting by Shruti Sonal in Bengaluru; Edited by Anil D’Silva