Veolia, a waste management firm, has been ordered to sell three businesses in order to complete its acquisition of 70% of rival waste group Suez.
They are two of the UK's largest waste management suppliers and last May Veolia announced it was buying the stake it did not already own in Suez.
In December, CMA said the Veolia-Suez merger raises competition concerns and today said Suez's UK waste management businesses, its UK industrial water operation and maintenance services business and Veolia's European mobile water services would have to be divested to get the deal approved.
Veolia and Suez compete in most of these businesses in the UK.
IN response, Veolia said it would sell the UK Suez waste business ithough conditions for the sale and the sale of the two water services businesses will be determined by the CMA.
Each business sale must be approved by the CMA.
Earlier this month, Veolia agreed to sell Suez’s UK waste business to Australia-based Macquarie Group Ltd for €2.4bn to settle antitrust worries
"Local authority budgets are already under strain, and this deal is likely to lead to them paying more and receiving a lower-quality service.
"The negative impact would have ultimately fallen on taxpayers at a time when they are feeling the pressure of the cost of living crisis," said Stuart McIntosh, chair of the CMA inquiry group.
Veolia and Suez generated about £2bn and £1bn, respectively, in the UK in 2020, roughly 10% and 7% of their annual worldwide revenues.
During the investigation, the CMA heard from councils and customers concerned about the potential impact of the merger on the quality and cost of services.