Allied Waste on track to close merger with Republic Services before year-end

By Jennifer Lanning Drey

Portland, Ore., Sept. 24 - Allied Waste Industries, Inc. is on track to close its proposed merger with Republic Services, Inc. in early to mid-December, Jim Zimmer, vice president of investor relations for Allied Waste, said Wednesday at the Deutsche Bank Securities Leveraged Finance Conference in Scottsdale, Ariz.

The company expects to meet with the Department of Justice in the next 30 to 45 days to obtain guidance on which of its operations needs to be divested for the transaction to gain regulatory approval.

Additionally, the company expects to hold a shareholder meeting on the merger in November.

Zimmer said upon completion of the proposed merger, the combined company would be committed to paying a dividend, paying down debt and maintaining sustained investment in the business.

"We see tremendous opportunity that [the merger] creates for all of our shareholders," he said.

Expected benefits include an improved capital structure, which is expected to boost Allied Waste to investment-grade status, he said.

Allied Waste expects to achieve $150 million of synergies through the merger, which will drive future cash flow, Zimmer said.

Allied Waste is a Phoenix-based non-hazardous solid waste services company.

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