Proposal Comes Less Than Three Weeks After Word Of Republic/Allied Merger

July 15, 2008 

On Monday, July 14, Waste Management, Inc., the nation's largest waste corporation, announced a proposal to purchase Republic Services, Inc. for about $6.2 billion. The Teamsters Union represents about 3,000 workers at Republic and 8,700 workers at Waste Management. This offer comes less than three weeks after Republic Services announced a plan to merge with Allied Waste Industries, Inc.

"We may well see additional consolidation attempts in this industry as employers face rising fuel prices and the slowing of the economy. Our team of experts is closely watching these developments and we will be aggressive in defending our members' interests,” said Bob Morales, Director, Teamsters Solid Waste, Recycling and Related Industries Division.

Waste Management's move apparently came as a surprise to Republic Services, which has not responded beyond stating that they will review the offer. Waste Management said it operates in all except one of Republic's 20 markets, mostly in the South. It expects to create $150 million in savings within a year of a combination with Republic.

If Allied and Republic move forward with their plans to merge, the combined company would be the waste industry's second largest company after Waste Management. If Republic accepts Waste Management's offer instead, Waste Management, already the nation’s largest waste corporation, will dominate the industry even more pervasively. This could lead to more anti-trust scrutiny and possible divestitures of operations imposed by the Department of Justice.