News: CWY Cleanaway to buy Sydney assets of Suez after Veolia merger deal

April 13 (Reuters) - Australia's Cleanaway Waste Management (CWY) said on Tuesday it would buy certain Sydney-based assets of Suez SA SEVI.PA after the French firm agreed to be acquired by local rival Veolia.

Suez and Veolia VIE.PA announced their merger on Monday in a deal valued at about 13 billion euros ($15.44 billion), following months of wrangling between the two waste and water management firms.

Last week, Cleanaway said it would acquire the local recycling and recovery business of Suez for A$2.52 billion ($1.93 billion), a deal that was conditional on the outcome of the takeover tussle.

The deal was, however, opposed by Veolia, which initiated legal actions against Suez and Cleanaway in France and Australia over the sale of the assets.

Suez may terminate the sale if it reaches an agreement for a takeover by Veolia, the companies said then. In such a scenario, Cleanaway will instead buy a portfolio of Suez's post-collection assets in Sydney under an alternate plan, they added.

Suez in its statement on Monday said the deal with Veolia will lead to suspension of ongoing legal proceedings.

The assets, comprising two landfills and five transfer stations, will be acquired for A$501 million, Cleanaway said.

Based on the likely timeline for Suez's takeover, the acquisition is expected to be completed in the second quarter of 2022, it added.

The acquisition is subject to approval by the Australian competition watchdog.

($1 = 1.3116 Australian dollars)