FRENCH utilities giant Veolia announced it would offload Suez's UK waste business to Australian investment group Macquarie for €2.4bn (£2bn) yesterday, after scrutiny from the UK's competition regulator.

Veolia, which struck a deal to snap up French rival Suez in a €13bn (£10.9bn) deal last year, faced pressure from the UK's Competition and Markets Authority over concerns the tie-up would cut the choice of rubbish collection providers in the UK and drive up council bills.

The sale of Suez's UK waste business is now set to clear the way for the takeover, with Veolia bosses saying they were confident the deal will now get the go-ahead from regulators.

"After the disposal of the remedies agreed with the European Commission and the signature of the agreement with Macquarie Asset Management, almost all of the antitrust divestitures will have been finalised less than a year after the acquisition of Suez," the company said in a statement yesterday.

"Suez confirms its interest in the potential acquisition of its former R&R assets in the UK," the company added. "Suez will assess in details the terms of the agreement at the end of which it will decide to exercise or not its right of first refusal."

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