Econostrum | Economic News in the Mediterranean

Suez wants to sell its recycling and recovery activities to the German company PreZero

Written by Frédéric Dubessy on Wednesday, September 16th 2020 à 17:25 | Read 787 times

PreZero operates in Europe and North America (photo: PreZero)
PreZero operates in Europe and North America (photo: PreZero)
FRANCE. Highly coveted, against its will, by its competitor Veolia, the Suez group (€18bn turnover in 2019 and 90,000 employees) announces, on Wednesday 16th September 2020, the signature of a memorandum of understanding with PreZero (€500m turnover in 2019 and 3,500 employees).

PreZero is the environmental branch of the German group Schwarz (€104.3 bn turnover and 429,000 employees), the parent company of Lidl and Kaufland.

This MoU (Memorandum of Understanding) provides for the "opportunity to develop strategic partnerships to promote innovative waste management solutions and accelerate the development of the circular economy in Europe", as stated in a joint press release.

On the other hand, Suez and PreZero are entering into exclusive negotiations for the sale of Suez's recycling and recovery activities (excluding plastics recycling and hazardous waste treatment activities) in the Netherlands, Luxembourg, Germany and Poland.

An operation included in the Suez 2030 plan

Suez has 125 sites (6,700 employees) in these four European countries, where it generated €1.11 billion in revenues in 2019. The transaction, which could take place during the first quarter of 2021, would value the businesses sold at €1.10 billion. It is part of the Suez 2030 strategy adopted in October 2019 to achieve savings of €1 billion and to proceed with disposals and acquisitions of between €3 billion and €4 billion in assets. And could enable the French group to achieve around 40% of its asset rotation targets included in this plan. "This project marks a major step in the implementation of our Suez 2030 strategic plan (...) which plans to focus our strengths, particularly in France and Europe, on activities and geographies where we can deploy our most promising innovations to be the leader in environmental services", comments Bertrand Camus, Chief Executive Officer of Suez, in the press release.

The German company PreZero is present at some ninety sites in Europe and North America in the field of waste management, recycling and all related services. "The acquisition of Suez Recycling and Recovery's activities in the Netherlands, Luxembourg, Germany and Poland will significantly expand PreZero's capabilities to act at every stage of the material life cycle to improve the recovery of recyclable materials and reduce the consumption of natural resources. Municipal customers and our commercial and industrial partners will also benefit from our ability to stimulate competition. At the same time, aware of its responsibilities, PreZero is proud to contribute to the establishment of a sustainable circular economy," says Thomas Kyriakis, member of the PreZero Board of Directors.


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