Waste group Cleanaway is reported to be on the verge of a major acquisition – believed to be the Australian operations of French operator, Suez.
Media reports said last night that Cleanaway could announce the $2 billion deal today.
Cleanaway put its shares into a trading halt yesterday and released a statement following media speculation of a big deal with Suez.
Cleanaway confirmed it had expressed interest to Suez to potentially acquire its Australian waste management assets, should the company pursue a sale of the business.
“Cleanaway evaluates potential opportunities against a range of factors and would only pursue an acquisition if it aligned with its strategy and would create value for its shareholders. There is no certainty that any discussions with Suez will lead to a transaction,” Cleanaway said.
Cleanaway’s shares were down 1.4% to $2.20 before the brief trading pause to allow the statement to be issued.
The pause was lifted and the shares rose 4.9% to end at $2.35.
The French parent last week rejected a 11.3 billion euro offer from rival, Veolia (which also operates in Australia).
Veolia controls 29.9% of Suez, having bought the stake last October and wants to mop up the rest.
