A company with links to Israel has pulled out of a bid for a major waste contract in Britain.

North London Waste Authority (NLWA) confirmed Veolia Environmental Services had withdrawn its attempt to secure contracts to manage water and fuel services in the capital.

Anti-Israel campaigners have repeatedly attacked the multinational over its involvement in the Jerusalem light railway project and in Israeli settlements in the West Bank, and have called on British local authorities to boycott the company.

Hackney Council controversially barred anti-Veolia protesters from speaking at an authority meeting on the bid last month.

NLWA covers seven boroughs and had named Veolia as one of the shortlisted companies for the contract, which is reportedly worth up to £4 billion over 25 years.

Veolia has given no reason for the withdrawal, which was announced on Friday, and a spokesman said the company would not comment. Clyde Loakes, NLWA chair, said the decision to pull out was “disappointing”.

The Palestine Solidarity Campaign welcomed Veolia’s departure from the process, claiming the company’s links to Israel were “toxic”.