Houston-based Waste Management has withdrawn its $6.73 billion takeover offer of Republic Services, Fort Lauderdale, Fla., citing financial market woes that would make the acquisition too risky.
According to a report by the Wall Street Journal, the company projected troubled markets and forecast third-quarter results above analysts’ expectations. “Given the current state of the financial markets, we believe that it would not be prudent to continue to pursue the acquisition of Republic," David Steiner, CEO of Waste Management, told the paper. "Our focus will remain where it has always been -- on providing strong and stable returns for our investors."
Waste Management said it expects third-quarter earnings of 62 cents to 63 cents a share on revenue of $3.53 billion.