Republic Services to buy Allied Waste

Disposal company Republic Services said Monday it will buy Allied Waste Industries in a $6.07 billion stock deal that would join the second- and third-largest players in the disposal industry.

Republic Services Inc. will pay Allied Waste shareholders .45 worth of a Republic share for each share held, valued at $14.04 per share based on Republic’s Friday closing stock price of $31.19.

Based on the nearly 432.5 million Allied shares outstanding at April 24, the deal is worth $6.07 billion and represents a nearly 4 percent premium to Allied’s closing stock price Friday.

Shareholders of Phoenix-based Allied Waste will own 52 percent of the combined company, which will be led by Republic Chairman and Chief Executive James E. O’Connor. Allied’s Don Slager will become president and chief operating officer.

“By combining the strengths of two great companies and integrating executives from both teams, Republic will enhance its leadership position in the U.S. environmental services industry, building on both companies’ foundations of profitable growth,” said O’Connor.

The companies announced June 14 that they were in merger talks, valued then at about $15.23 per share, or $6.59 billion. The news sent shares of both firms down about 5 percent and the stocks have since slipped further.

On Monday, shares of Republic Services fell 2 cents to $31.17, and Allied fell 5 cents, or $13.51.

For Subscribers

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

FOR SUBSCRIBERSCornell rape allegation spotlights stringent New York state laws that have long drawn criticism

FOR SUBSCRIBERSThe debate over AI’s future rages on both coasts

FOR SUBSCRIBERSDecades-old march dispute reignites in Northern Ireland, threatening political crisis

In a statement Monday, Republic Services said the combined company will have annual revenue of about $9 billion and a total market capitalization of about $12 billion. More than 35,000 employees will serve over 13 million customers in 40 states and Puerto Rico.

For Subscribers

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

FOR SUBSCRIBERSCornell rape allegation spotlights stringent New York state laws that have long drawn criticism

FOR SUBSCRIBERSThe debate over AI’s future rages on both coasts

FOR SUBSCRIBERSDecades-old march dispute reignites in Northern Ireland, threatening political crisis

The transaction is expected to close by the fourth quarter, and add to Republic’s earnings per share in the first year after closing.

The new company’s board will consist of 11 members, including O’Connor, five independent directors from the current Republic board and five from Allied’s board. The Phoenix-based company will be named Republic Services Inc. and traded under the ticker symbol ’RSG’ on The New York Stock Exchange.

Republic is expected to continue its current annual dividend of 68 cents per share.

Merrill Lynch & Co. acted as financial adviser to Republic. Akerman Senterfitt and DLA Piper US LLP served as legal advisers. UBS Investment Bank acted as lead financial adviser to Allied Waste Industries Inc. and Mayer Brown LLP served as legal adviser.