Waste Management launched an unsolicited surprise counter offer to buy Republic Services for about $6.19 billion, potentially derailing Republic's deal to acquire Allied Waste Industries Inc. for $6.77 billion. Republic said in a statement that it would carefully review the proposal and respond in due course, but the company noted that it already had a definitive merger agreement with Allied Waste. Waste Management's bid of $34 per share represents a 22% premium to Republic's recent closing price, but that stock had been off by 17% since rumors of its deal to buy Allied first surfaced. Therefore, it is likely that Waste Management will have to sweeten its offer before all is said and done.
It is also likely that the greater level of overlap between the two companies' markets will necessitate some divestitures; however, according to Waste Management's Chairman and CEO, David Steiner, "we're also certain the assets we'll get to keep are significant and make for a compelling transaction." Republic's strong business in Las Vegas is an especially compelling asset, said Steiner. Even with divestitures, the merger is likely to result in an expansion of Waste Management's share of the $55 billion waste management industry to 30% from 24%.
According to Steiner, "Our proposal clearly offers a better and more certain value alternative to Republic stockholders than the recently announced Republic-Allied Waste transaction."
Waste Management is drawing strength from its own recent performance. The company said it expected to report second-quarter earnings of between $0.61 and $0.62 per share, excluding special items, exceeding analysts' average estimate of $0.58. Revenue rose 3.9% to $3.49 billion during the quarter from a year earlier. Analysts were expecting $3.43 billion...Read More »
City of Dallas officials are planning to construct as many as seven bioreactor cells on the city's McCommas landfill. The process which recirculates landfill leachate to accelerate and augment waste decomposition, could extend the life of the landfill by 100 years and produce enough methane to power 16,000 homes. Construction of the first cell is scheduled to begin in October. According to Ron Smith, assistant director of the city's sanitation department, "Even though it looks like we're just burying trash, it's really a huge science project." The city hopes to reap $30,000 to $50,000 per month from the sale of the power...Read More »
Two longtime insiders of medical waste management firm Stericycle Inc., have purchased a combined $20 million in additional shares of company stock according to recent filings with the Securities and Exchange Commission. Company Chairman Jack Schuler and director John Patience, whose venture-capital firm founded Stericycle in 1989, bought the shares based on their belief that it represents a good investment in a company and business that is somewhat insulated from troubles in the general economy. According to Mr. Patience, "people still go to hospitals and they go to the doctors' office and they have procedures and procedures generate waste and Stericycle picks it up and treats it."...Read More »
Houston, TX-based Strategic Materials Inc., the largest glass manufacturer in North America, has reached an agreement with the investment group WHI Capital Partners to acquire glass recycler Container Recycling Alliance (CRA) from WHI for an undisclosed amount. CRA, which WHI bought in 2006, operates eight glass recycling plants in the United States. Strategic Materials owns and operates 31 glass processing and aggregation plants in the United States, Canada, and Mexico and sells approximately 1.3 million tons of cullet annually...Read More »
The U.S. Environmental Protection Agency has released a report that discusses potential impacts of climate change on human health and welfare, and on communities throughout the U.S. Entitled "Analyses of the Effects of Global Change on Human Health and Welfare and Human Systems," the peer-reviewed report is considered to be the most up-to-date synthesis and assessment of scientific literature on the impact of global change. It details specific challenges including unusual or unexpected weather, and how some individuals and communities may be disproportionately affected especially the elderly, the poor, children, and people with chronic medical conditions...Read More »
Toronto Ont.-based W2 Energy Inc. received a $7.9 million order to build a 40 ton-per-day waste-to-energy conversion plant from Better World Energy of Thailand. The plant will employ W2 Energy's proprietary plasma and gas to liquid technologies to convert municipal solid waste into synthetic diesel fuel. Heat from the plant will be converted to electricity. W2 Energy will build, install and commission the plant...Read More »
CleanTech Biofuels, Inc. is acquiring Biomass North America Licensing, Inc. which owns the rights to use a technology for the production of cellulosic biomass from municipal solid waste in the United States and Canada. CleanTech will develop a commercial site using the licensed technology at a transfer station currently operating in Chicago, Illinois and owned by a principal shareholder of Biomass North America...Read More »
BFI Canada Income Fund will release second quarter financial results at the close of the market on August 7 and host a conference call the following day at 8:30 a.m. (Eastern)...Read More »
WCA Waste Corp. will announce second quarter financial results at the close of the market on August 6 and host a conference call the following day at 8:30 a.m. (Eastern)...Read More »
Clean Harbors named Simon R. Gerlin to a newly created position of Senior Vice President of Finance. Gerlin will report to Clean Harbors' Chief Financial Officer, James M. Rutledge and oversee all of the Company's controllership functions. He was formerly a partner at PricewaterhouseCoopers for nearly 17 years...Read More »