After rejecting Waste Management’s latest $6.73 billion hostile takeover bid, Republic Services Inc. said it has lined up lenders for a $1.75 billion line of credit to give it the financing needed for a proposed merger with Allied Waste Industries Inc.
Republic, based in Fort Lauderdale, Fla., said it expects to get the money under the new credit line once the merger with Allied Waste closes in the fourth quarter. Republic owns Saguaro Environmental Services in Tucson. Allied, which is based in Phoenix, has no Tucson operations.
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The combination of Republic and Allied Waste would create the nation’s second-largest trash hauler, behind Waste Management.
For his part, Waste Management’s CEO David Steiner said last week the merger wasn’t essential to keep his company competitive.
"This is not Yahoo-Google, where we have to have this strategically," Steiner said in an interview on CNBC. "We are the only player of the three where, either way, we win."
Standard & Poor’s estimates Waste Management controls about 25 percent of the nation’s trash disposal business; Allied has 11 percent and Republic has 6 percent.
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