Phoenix-based Allied Waste has announced it’s pleased with the recent decision by Republic Services, Fort Lauderdale, Fla., to reject a buy-out bid from Houston-based Waste Management.
According to a statement released by Allied, the company thinks its pending merger with Republic represents the best opportunity to create significant long-term value for Allied shareholders.
“Allied and Republic share a common vision and our combined resources will create a formidable competitor to Waste Management in the waste and environmental services industry,” the statement continues. “Together, we will have a strong national footprint, a higher revenue growth profile and significantly higher operating margins than Waste Management. Our combined company will possess an investment grade balance sheet, and the transaction will provide a cash yield to both sets of shareholders.”
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