The merger of Veolia and Suez could lead to a loss of competition in the supply of several waste and water management services in the UK, according to the Competition and Markets Authority (CMA).

Veolia and Suez are two of the largest suppliers of waste management services to councils in the UK.

After the two companies decided to merge, the CMA received a number of complaints from customers who had competition concerns.

Veolia and Suez are two of only a small number of suppliers active within the UK that are able to service the largest and most complex waste management contracts with councils. As a result, the merger could lead to higher prices and lower quality services across a range of waste management activities in the UK.

‘Councils spend hundreds of millions of pounds on waste management services. Any loss of competition in this market could lead to higher prices for local authorities, leaving taxpayers to foot the bill, and reduced innovation to achieve Net Zero targets,’ said Andrea Coscelli, chief executive of the CMA.

‘Everyone in the UK uses waste and recycling services in some way, it is therefore vital that this deal is subject to more detailed scrutiny if our concerns aren’t addressed.’

She added: ‘Veolia and Suez now have 5 working days to submit proposals to address the CMA’s concerns. If suitable proposals are not submitted, the deal will be referred for an in-depth Phase 2 investigation.’

Veolia and Suez have been contacted for comment.