LONDON, Aug 25 Reuters The UK39;s Competition and Markets Authority has ordered the unwinding of the merger of waste management firms Veolia and Suez in the UK, citing competition concerns.

The CMA said on Thursday that Veolia must sell three parts of the merged business because of substantial competition problems, in a decision it said will protect councils and businesses from likely higher prices and lowerquality services.

Suez39;s UK waste management services business, Suez39;s UK industrial water operation business and Veolia39;s European mobile water services business must all be sold to buyers approved by the CMA, it said.

We will now work with Veolia to ensure that appropriate buyers are found so that business, councils and ultimately taxpayers will not lose out, Stuart McIntosh, chair of the CMA inquiry group, said.

Veolia generated around 2 billion pounds 2.37 billion, 10 of its global revenue, in the UK in 2020, while Suez generated one billion pounds in the UK, the CMA said.

European Union and Australian competition authorities have also required major divestments, the CMA said.

Veolia and Suez39;s 13 billion euro 13 billion tieup won approval from the European Union in December last year, after a monthslong legal dispute, and the deal closed in January. 

In June, Veolia said it was planning to sell off Suez39;s UK waste business after the competition watchdog raised objections.

Global players in waste and water management, Veolia and Suez generated…