The CMA has today required Veolia to sell 3 businesses after an in-depth merger investigation concluded the merger gives rise to competition concerns in a number of markets.

The Competition and Markets Authority (CMA) has concluded that Veolia must sell substantial parts of the merged business:

• Suez’s UK waste management services businesses;

• Suez’s UK industrial water operation and maintenance services business; and

• Veolia’s European mobile water services business.

These businesses make up almost all of the overlap between Veolia’s and Suez’s competing operations in the UK.

In response to the provisional findings of the Phase 2 inquiry, Veolia said that it would sell the UK Suez waste business. The CMA will determine the conditions of the sale, as well as the sales of the 2 water services businesses.

The CMA will need to approve the purchasers of each business before the completion of each sale.

Veolia and Suez are both global players in waste and water management. In 2020, the companies generated approximately £2bn and £1bn in the UK respectively – roughly 10% and 7% of their annual global revenues.

Veolia and Suez are active across the full waste management supply chain. They collect waste from households and businesses, sort it for recycling and composting and dispose of the remaining waste – some of which is incinerated to produce electricity. Many local authorities in the UK rely heavily on either Veolia or Suez to meet their waste management needs. The companies also supply water and wastewater management services to industrial customers.

Throughout the investigation, the CMA heard from a number of councils and customers who were concerned about the potential impact of the merger on the cost and quality of the services they receive. Ultimately, taxpayers and businesses would have been left to cover any increase in cost.

Stuart McIntosh, Chair of the CMA inquiry group, said:

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.

Given our concerns about the merger, we have concluded that Veolia must sell most of the operations it took over in the UK when it acquired Suez. We will now work with Veolia to ensure that appropriate buyers are found so that businesses, councils – and ultimately taxpayers – will not lose out.

The CMA’s final report, published today, confirms its provisional findings issued in May. It rules that the merger would lead to competition concerns in 5 waste markets and 2 water treatment markets. In each of these markets, the merging businesses currently compete closely and would face limited competition after the merger. The CMA found that this would be likely to result in higher cost or lower quality services for councils, with knock-on effects for taxpayers, as well as businesses across the UK.

The CMA launched an investigation into the deal between Veolia and Suez in October 2021. The transaction was referred for an in-depth Phase 2 review, which is led by an independent inquiry group, in December 2021.

This deal has been reviewed by a number of competition authorities across the world. Major divestments were also required in the EU and in Australia.

For more information, visit the Veolia / Suez merger inquiry page.

1. For media enquiries, contact the CMA press office on 020 3738 6460 or press@cma.gov.uk.

2. The CMA found that the merger would lead to a Substantial Lessening of Competition (SLC) in the following areas:

• Collection of non-hazardous waste for municipal customers;

• Operation and maintenance of material recovery facilities (i.e. sorting of waste after collection) for municipal customers;

• Operation and maintenance of Energy Recovery Facilities (i.e. incineration) for municipal customers;

• Supply of incineration services to customers in 2 local areas;

• Collection of non-hazardous waste for commercial and industrial customers;

• Operation and maintenance of water and wastewater treatment facilities for industrial customers; and

• Provision of mobile water services to industrial customers.

This includes one Malaysian who received a Chevening Fellowship to complete a short course at the Oxford Centre of Islamic Studies.

The Chevening award is the UK Government’s global scholarship programme, funded and administered by the UK’s Foreign, Commonwealth & Development Office. This is complemented by generous sponsorships by Malaysian corporate partners including CIMB Group Holdings Berhad, Yayasan Khazanah and the Jeffrey Cheah Foundation. British universities also provide additional funding in support of the Chevening programme.

His Excellency Charles Hay MVO, British High Commissioner to Malaysia, hosted a pre-departure briefing and reception for the scholars this evening. At the reception, he said:

Malaysia’s growing appetite for higher education in the UK is reflected in the increase in Chevening Scholarships applications. We received a total of 748 applications for the 2022/23 compared to 620 applications in the preceding year. I am pleased to announce that the UK is awarding 39 Chevening Scholarships to Malaysia. This is just one example of how education remains the most enduring aspects of the UK-Malaysia relationship.

He added:

The 2023/24 Chevening application cycle is now open and I encourage more Malaysians from every state to apply. The Chevening programme provides leaders of tomorrow with a 360 educational experience which includes exploring UK’s diverse culture.

Malaysians who wish to get a scholarship to pursue a post-graduate degree in the UK should apply by 1 November 2022. More information is available on the Chevening website.

The current batch of scholars will be heading to the UK as early as September this year to pursue a wide range of postgraduate programmes at top UK universities, including subjects such as climate change, law, public policy, public health and filmmaking.

Scholar Shimri Lim who is attending University of Birmingham to study Trauma Science MSc said:

I am extremely excited about the opportunity to learn from leading experts in Trauma Care at the University of Birmingham which has a joint civilian & military trauma centre based in Queen Elizabeth Hospital Birmingham. The one year with Chevening is an unparalleled platform to build professional relationships which I am determined to utilise to the fullest for the benefit of Malaysia and the UK. The Masters in Trauma Science will equip me with the necessary knowledge to further improve the Health Services of the Malaysian Armed Forces. Chevening has enabled me to be one step closer to my goal of providing state-of-the-art trauma care for the Malaysian soldiers and our allies.

Sarawakian scholar Nur Afifah Binti Ismail said:

Being a Chevening scholar this year, I look forward to receiving a world-class education and gaining a wider perspective from like-minded people from around the world. Exchanging ideas and building networks is a must while achieving my long-time dream to watch Formula 1 at the Silverstone in England. My focus is on Digital Media and Communication at the University of Stirling. I hope that the various aspects of digital communication skill I learn will allow me to educate youngsters to speak up for justice and against inequality through digital platforms. I hope my contribution in Malaysia when I return can kickstart more opportunities and an inclusive future for youths in Sarawak.

Sabahan scholar Russell Rohny who will be attending the University of Edinburgh to study Global Mental Health and Society said:

My heart is accelerating for the growth that I will experience during the upcoming Chevening journey, especially in making friends with diverse individuals from around the world, challenging my wisdom by diving deeper into interdisciplinary studies, and immersing into the British culture in the heart of Scotland. As someone of Iban, Murut and Dusun heritage from Tambunan, Sabah, I will carry my indigenous values with me throughout this one year. Driven by passion and resilience, I want to raise awareness about mental health among the multi-ethnic communities of Sabah. I want to contribute towards formulating sustainable approaches to this issue, nationally and internationally.

Scholar Charina Pria Sivayogam who will be attending University of Kent to study Conservation and International Wildlife Trade said:

I am grateful to be awarded the Chevening scholarship as it allows me to grow my skillset and explore other innovative approaches to countering wildlife crime at University of Kent. This illicit issue does not only impact wildlife population but also our livelihood, national security, emerging zoonotic diseases, and more. It is exciting to have the opportunity to learn from experts and study at the institute that is at the forefront of multidisciplinary research in conservation that examines these issues from all angles. With this, I look forward to contributing to Malaysia’s ongoing efforts in protecting our natural heritage.

Malaysia is the second largest recipient of Chevening awards in ASEAN and there are already over 1,700 Chevening alumni in Malaysia.

• UK takes fresh action against the Myanmar Armed Forces on 5th anniversary of the military’s campaign of ethnic cleansing against the Rohingya.
• New sanctions against military-linked companies to target the military’s access to arms and revenue.
• UK confirms its intention to intervene in The Gambia v. Myanmar International Court of Justice Case to support international justice efforts.

The UK has announced a further round of sanctions to target military-linked businesses in Myanmar. Those being sanctioned include Star Sapphire Group of Companies, International Gateways Group of Companies Limited (IGG) and Sky One Construction Company Ltd. They are being sanctioned in an effort to limit the military’s access to arms and revenue.

Minister for Asia Amanda Milling has also confirmed the UK’s intention to intervene in the case of The Gambia v. Myanmar before the International Court of Justice. The case will determine whether Myanmar has violated its obligations under the Genocide Convention in relation to the military’s acts against the Rohingya in 2016 and 2017.

The Myanmar Armed Forces launched a devastating attack on the Rohingya communities living in Rakhine State, Myanmar on 25 August 2017. A UN Fact Finding Mission report stated that over 10,000 Rohingya were killed and 740,000 displaced into neighbouring Bangladesh.

The report also claimed Myanmar Armed Forces engaged in a campaign of sexual violence, grave violations against children, torture and village burnings. These are the hallmarks of a military acting with impunity, and the UK notes its grave concern that they are employing these tactics in their current operations against pro-democracy groups in Myanmar.

The UK has been clear that what happened to the Rohingya was ethnic cleansing and remains committed to taking action to stop the brutality of the Myanmar Armed Forces and hold them to account.

Minister for Asia Amanda Milling said:

The UK will always face down those who seek to undermine and destroy our values of freedom and democracy. Five years on, we continue to stand in solidarity with the Rohingya people and condemn the Myanmar Armed Forces’ horrific campaign of ethnic cleansing.

Our decision to intervene in The Gambia v. Myanmar case and a further round of sanctions sends a strong signal of our continued support to seek accountability for the atrocities in 2017 and also restrict the military junta’s access to finance and the supply of arms.

The violence in 2017 was the result of an attempt, over generations, to destroy the Rohingya identity. The 600,000 Rohingya remaining in Rakhine State have been stripped of their citizenship and face systemic discrimination restricting the freedom of movement and access to healthcare. The UK now reiterates the call for the abolition of the 1982 Citizenship Law and the restoration of Rohingya citizenship.

Since 2017 the UK has provided £330m in aid to the camps, supporting food needs, shelter, sanitation, education, medical and protection services.

• The case of The Gambia v. Myanmar is being heard before the International Court of Justice, in The Hague. The case will determine whether Myanmar has violated its obligations under the Genocide Convention in relation to the Military’s acts against the Rohingya in 2016 and 2017.

• Proceedings to date have focused on important procedural issues. On 22 July 2022, in response to preliminary objections raised by Myanmar, the Court found it has jurisdiction to hear the case and that Gambia’s application was admissible. The case will now proceed to the merits phase, during which substantive arguments on the interpretation, application and/or fulfilment of the Genocide Convention will be made.

Mr President, I thank the Prosecutor for the thirty-fifth report on the Situation in Darfur, pursuant to Resolution 1593.

I also thank the Prosecutor for his briefing to this Council, and welcome this being delivered during the Prosecutor’s second visit to Sudan, as a sign of the Court’s unwavering commitment to help deliver justice for the people of Darfur.

In this light, the UK welcomes the progress made in the trial of Mr Abd-Al-Rahman, in which 28 witnesses have provided evidence since April. It is testament to the victims’ courage and patience for them to tell their stories after two decades, and represents a vital step towards seeking accountability for all survivors and affected communities in Darfur.

This historic moment demonstrates how enhanced cooperation can translate into meaningful action in the pursuit of justice. It is our sincere hope that this initial step begins to deliver justice for the people of Darfur, and helps to break the cycle of impunity that exists across Sudan.

However, Mr President, it is regrettable that sufficient cooperation has been lacking from the Sudanese authorities since last October’s military coup. This puts at risk the progress that the previous Government of Sudan had been able to make with the Court.

The UK therefore urges the Sudanese authorities to immediately enhance their cooperation with the Court.

Firstly, we call for the Sudanese authorities to engage in helping to facilitate the establishment of a field office in Khartoum. A permanent presence is vital for the Office of the Prosecutor to continuously deepen its engagement with affected communities and to facilitate stronger cooperation with the Sudanese authorities.

Secondly, the UK urges the Sudanese authorities to respond swiftly to the Court’s outstanding requests for assistance, noting the Court have only had a response to two of the seventeen requests they have made in the last six months. We also urge the Sudanese authorities to provide unimpeded access to the documentation and witnesses that the Court have identified.

Finally, Mr President, the UK would like to commend the ICC’s tireless efforts in delivering justice for the people of Darfur, and reiterate our support to the Court in this endeavour. In this respect we call for action to deliver on the four ICC warrants which remain outstanding in the Darfur situation, and we continue to call for the surrender of Mr Banda, who remains a fugitive from the Court.

Thank you.