The acquisition is the second that Macquarie has funded from a new $13 billion war chest it is building for more European infrastructure deals.
| French waste management giant Veolia has confirmed it will offload its Suez waste management business in Britain to Macquarie Group, which will fork out €2.4 billion for the asset.
Veolia said Macquarie would shell out almost 17 times Suez’s 2021 earnings on the purchase. The French giant said this would compensate the seller for being unable to harvest synergies with its own UK operations, following a veto from the British regulator.MAM is buying Suez with capital from its new regional war chest, the Macquarie European Infrastructure Fund 7.
Waste processing and recycling is seen as part of the net-zero transition story, as it plays into the “circular economy” that has become a buzzword among infrastructure investors. Suez is the second deal MAM has done using MEIF 7 funds, after Macquarie announced last week that it was buying a “significant minority stake” in British data centre provider VIRTUS.
Veolia said that Macquarie’s purchase price of 16.9 times normalised earnings before interest, tax, depreciation and amortisation was “significantly higher than the acquisition price resulting from the takeover bid” Veolia made in 2021.
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