Waste deal aims at market control
We've written earlier about the oligopoly in the highly corrupt solid waste industry. That oligopoly just got tighter.
Republic services, the #2 waste disposal company in the US announced the acquisition of Allied Waste Industries, the #3 player in that area in the US. The value of the deal is for $6.1 billion, in a stock swap.
The two companies combined own over 35,000 companies (employees), including waste haulers, landfills, and recycling companies/
The combined company will compete better with the #1 player in the field, Waste Management. That company has a 35% share of the US market, while the newly united company will have 17%.
One factor in the deal is said to be the high cost of fuel, which is eating into profits from haulage. The ability to direct trucks to closer landfills will save money.
As usual, the big factor will be priding power. With one less major competitor, the new big two will have more control over prices.
9:14:58 PM 
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