Antitrust Lawyer Blog Commentary on Current Developments

DOJ REQUIRES DIVESTURE IN REPUBLIC’S ACQUISTION OF ALLIED WASTE

On December 3, 2008, the Department of Justice (“DOJ”) required Republic Services Inc. (“Republic”) and Allied Waste Industries Inc. (“Allied”) to divest to divest 87 commercial waste collection routes, nine landfills and 10 transfer stations for Republic’s $4.5 billion acquisition of Allied to proceed.
The transaction as originally proposed would result in reduced competition and higher prices for consumers for collection of municipal solid waste from commercial businesses or disposal of waste, or both in Los Angeles; San Francisco; Denver; Atlanta; northwestern Indiana; Lexington, Ky.; Flint, Mich.; Cape Girardeau, Mo.; Charlotte, N.C.; Cleveland; Philadelphia; Greenville-Spartanburg, S.C.; and Fort Worth, Houston, and Lubbock, Texas. According to the DOJ, in these 15 areas, Republic and Allied are the only two significant competitors providing hauling and municipal solid waste disposal services.

In 2007, Republic’s annual revenues totaled $3.2 billion while Allied’s totaled $6.1 billion.


Andre Barlow

(202) 589-1834
abarlow@dbmlawgroup.com