The merger between Suez SA and Veolia Environnement SA could lead to a loss of competition in the supply of water-and-waste management services, the UK Competition and Markets Authority said Tuesday.
The regulator said it found the deal could lead to higher prices and lower quality services across waste-management activities in the UK.
“Councils spend hundreds of millions of pounds on waste-management services,” said Andrea Coscelli, chief executive of the CMA. “Any loss of competition in this market could lead to higher prices for local authorities, leaving taxpayers to foot the bill.”
According to the authority, the merger could also result in industrial customers paying higher prices in several water-management markets.
The CMA said Suez and Veolia have five working days to address these concerns. If suitable proposals aren’t presented, the deal will be referred for an in-depth phase-two investigation.
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