EU: Companies Shanks announces €510m merger with Dutch waste group

Shanks Group, the London-listed waste management company, has announced its intention to merge with the privately-owned van Gansweinkel Groep in a €510m cash and shares deal.

Shanks admitted it was considering a bid for the group after press speculation in May, and confirmed today it has entered exclusive discussions with VGG and its two largest shareholders.

Shanks said the deal offered “significant potential cost synergies and significant underlying earnings enhancement.”

VGC shareholders will receive €306m in cash and 29 per cent ownership of the combined group.

Peter Dilnot, Shanks chief executive, said:

“We are delighted to have reached agreement in principle with VGG on the terms of a proposed merger. This is a truly transformational deal for Shanks. Our two businesses are highly complementary and a combination would create a leading Benelux waste-to-product business, with enhanced geographic coverage, capabilities and technologies as well as significant synergy potential. We look forward to working with the VGG team to finalise the terms and financing of the transaction and delivering attractive returns for shareholders in the Combined Group.”

Full Content: Financial Times

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