French utility group Veolia has agreed to sell Suez’s waste business in the UK to Macquarie Asset Management in a deal worth €2.4 billion (£2bn) to resolve competition concerns.

It is the last step in Veolia’s acquisition of Suez, which follows objections raised by the UK Competition and Markets Authority (CMA) after the combination of the world’s two largest water and waste groups.

The waste management company, which agreed to buy Suez in a deal worth €13 billion (£11bn) last year, has been selling parts of the French waste firm to clear anti-trust concerns with competition authorities across Europe.

Following the completion of the deal, Veolia is said to remain a major player in the UK waste management market, with revenues of around €2 billion (£1.7bn).

Estelle Brachlianoff, Chief Executive Officer of Veolia said: “We are very satisfied with this transaction, which is being carried out under excellent conditions that once again demonstrate the attractiveness of the environmental services business and the relevance of our proposal for remedies to the CMA. It will create significant value and strengthen our investment capacity in strategic markets. The valuation of these assets reflects both the initial price and the synergies expected from the combination, in line with all of the disposals carried out in the frame of the antitrust clearances, which are higher than the acquisition price of Suez.

“Following this transaction, Veolia will remain a major player in the waste sector in the United Kingdom and more broadly, in the environmental services market in the region, which remains strategic for the Group.”