UPDATE: Justice Dept OKs Republic-Allied Waste Deal, With Conditions
By Brent Kendall Of DOW JONES NEWSWIRES WASHINGTON -(Dow Jones)- Antitrust regulators at the U.S. Justice Department on Wednesday cleared the merger of Republic Services Inc. (RSG) and Allied Waste Industries Inc. (AW), but required the companies to divest assets in 15 metropolitan areas to alleviate concerns that the deal would harm consumers.
The department said the concessions were necessary to preserve competition in markets where Republic and Allied have few competitors.
"This remedy ensures that the benefits of competition - namely, lower prices and better service - will be preserved in these areas," said Deborah Garza, the acting head of the department's antitrust division.
Under the Justice Department's requirements, Republic and Allied must divest assets in Atlanta, Los Angeles, Philadelphia, San Francisco and other cities.
A Republic Services spokesman said there were no surprises in the required divestitures.
"We expect to close the deal shortly," spokesman Will Flower said.
The Republic-Allied Waste deal combines the nation's second- and third-largest garbage collectors.
Republic announced its acquisition of Allied Waste in June, an all-stock deal that was valued at $6.24 billion.
The combined companies, which expect to generate more than $9 billion in annual revenue, will take the Republic name but will be based out of Allied's headquarters in Phoenix. Shareholders of both companies approved the deal last month.
The combined company still will be smaller than industry leader Waste Management Inc. (WMI), which in October dropped its own bid to buy Republic.
Waste Management had made two unsolicited offers for Republic after Republic announced its intention to acquire Allied Waste. Republic rejected both offers.
The Republic-Allied deal comes at a time when all three leading garbage haulers have been raising prices. The three companies control roughly two-thirds of the country's landfill business.
-By Brent Kendall, Dow Jones Newswires; 202-862-9222; brent.kendall@dowjones.com
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(END) Dow Jones Newswires
December 03, 2008 17:40 ET (22:40 GMT)
Publié le 03 Décembre 2008 Copyright © 2008 Dowjones
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