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Trash merger means selling local landfill

Posted: December 23, 2008 9:18 p.m.
Updated: December 24, 2008 4:59 a.m.
Two local waste management companies joined forces, but the merger means selling the Chiquita Canyon Landfill, a company official said.

Republic Services and Allied Waste Industries merged Dec. 5.

The United States Department of Justice requires the two waste-collection giants to sell their assets across the nation, including the Chiquita Canyon Landfill in Val Verde owned by Republic prior to the merger, said spokesman Will Flower.

"We submitted an application to the Department of justice for review of the merger. Part of the approval included our company signing a consent decree to sell the Chiquita Canyon Landfill," Flower said.

The Justice Department made the request of sale to maintain a competitive trash-hauling market in Southern California, he said. Allied Services owns Sunshine Canyon Landfill; the merge places two key landfills under the ownership of one company, Flower said.

Several suitors have approached Republic Services since the federal settlement was made public, Flower said.

"These properties rarely come to market, so when they're available they are quickly scooped up by other companies in the solid-waste industry," he said. Republic Services has not listed a sale price, he said.

The last sale of waste-industry assets rivaling those for sale in the Republic Services-Allied Waste Management Industries merge was 10 years ago, Flower said.

Waste Management merged with USA Waste in 1998 and was forced by the Justice Department to sell assets.

The process took six to eight months, Flower said.

Chiquita Canyon's new owner can establish new prices with the city's two contracted haulers, Waste Management/Blue Barrel Disposal and Burrtec Waste Industries.

Customers should expect the same prices, Flowers said.

"I am sure the new owners will do their best to work with the community," he said.


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