CWY has announced a conditional agreement to acquire Suez Groupe’s Australian recycling and recovery business or a portfolio of its Sydney post-collection assets. The potential transaction is in-line with CWY’s Footprint 2025 strategy and is significant in terms of size, complementary assets, growth options, and potential synergies. It is a big play for CWY during a time when it has no CEO. We estimate CWY could undertake a capital raising of up to $1.95bn to part-fund the business acquisition. At this stage, we make no changes to forecasts or $2.37ps target price, noting that key variables are not yet certain (including completion). However, our preliminary modelling indicates the Suez R&R transaction is NPV per share accretive (+18cps to $2.55ps), while the Sydney asset portfolio acquisition is neutral. HOLD retained.