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Waste firms to dump sites
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December 31, 1998: 10:28 a.m. ET
Waste Mgmt., Eastern Environmental will sell assets to satisfy regulators
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NEW YORK (CNNfn) - Waste Management Inc. and Eastern Environmental Services have agreed to divest several landfills, transfer stations and collection routes under a deal with state and federal regulators that will allow the garbage-disposal giants to consummate their $1.2 billion merger.
The agreement announced Thursday apparently satisfies concerns raised by antitrust officials at the U.S. Department of Justice and in the states of Florida, New York and Pennsylvania that the marriage of industry-leader Waste Management and its rival would severely crimp competition.
Last month, the Justice Department filed a lawsuit to stop the merger, arguing a link-up would reduce competition on a multi-billion dollar, 20-to-30 year contract New York City was negotiating for residential waste disposal services.
The complaint asserted that the merger would also restrict competition in several counties of Pennsylvania and Florida.
Waste Management (WMI), the world's largest waste collector and disposer, would have controlled about 50 percent of the market for garbage disposal services in New York City upon completion of the merger, the Justice Department asserted.
It also would control as much as 80 percent of the market in certain counties of Pennsylvania and Florida, the complaint alleged.
In a joint statement Thursday, the two waste firms said they anticipated receiving court approval for their link-up later in the day, enabling them to complete the merger, announced on Aug. 17.
Under terms of the agreement, the companies said they will sell three Pennsylvania landfills, three New York transfer stations and about 20 commercial collection routes.
The settlement also includes an agreement for the companies to jointly seek an amendment to the Waste Management/USA Waste merger consent decree. The amendment would allow Waste Management to retain the Bronx-Queens Expressway transfer station in New York City. In 1998, Waste Management and USA Waste completed a $13.5 billion merger.
In a statement, the companies said the agreement settles all claims made by the states and the Justice Department in their Nov. 17 complaint, which was amended Dec. 2. They added the last day of trading for Eastern Environmental (EESI) stock will be Thursday.
Houston-based Waste Management provides waste management services to municipal, industrial, residential and commercial customers throughout the United States, the District of Columbia, Canada, Puerto Rico and Mexico. Waste Management reported revenue of $9.2 billion in 1997.
Eastern Environmental Services, of Mt. Laurel, N.J., is a non-hazardous solid waste management company that specializes in the collection, transportation and disposal of waste. Eastern had sales of $96 million in 1997.
Shares of Waste Management were up 1/16 at 45 early Thursday on the New York Stock Exchange. Eastern Environmental shares rose 13/16 to 28-15/16. 
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