Cleanaway shares up on second-prize acquisition
A FALLBACK $501m deal for key Sydney landfills and other assets is a “prize in itself”, Australian waste giant Cleanaway says, after becoming a stalking horse in the Suez-Veolia fight for global garbage control.
A bigger $2.5bn agreement for all of Suez’s Australian recycling and recovery assets was terminated when the French waste giant agreed to a sweetened takeover offer from 29 per cent shareholder and rival Veolia late on Monday.
In a note to investors, Cleanaway said the inclusion of Suez’s two landfills and five waste transfer stations would “enhance and complement” its existing footprint.
“We are regular customers of these facilities and assets and while the discussions for all assets started almost a year ago, we went in with our eyes open,” Cleanaway chief operating officer Brendan Gill said.
“While not elegant, it’s a good outcome because we got a prized asset that we would have always loved to have.”
Cleanaway shares rose 2.4 per cent to $2.53.
JP Morgan analysts said the secondary deal was more favourable to shareholders.