Bin collection merger put on hold over competition fears

THE competition regulator has blocked the merger of two bin collecting firms over fears it will lead to even higher council tax bills.

The Competition and Markets Authority (CMA) raised concerns that if two companies were not competing, councils and businesses could face higher bills.

Veolia and Suez, both based in Paris, are the world’s two largest waste and water companies. Veolia agreed a deal to buy Suez in April last year in a deal worth almost €13bn (£11bn), triggering inquiries by the UK and by Brussels.

Stuart Mcintosh, chairman of the CMA group investigating the deal, said: “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.”

The CMA said it identified concerns over the merger in all but one of the eight markets where the companies compete. This could make the councils pay more or get lower quality services, which will have knock-on impacts on taxpayers and businesses, it said.

Mr Mcintosh added: “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.”

The CMA said its preliminary concerns will be followed by a final report, which will be published on July 17. The companies can offer a plan to ease the regulator’s concerns by June 2.

Veolia declined to comment. Suez did not respond to requests for comment.