Shanks said on Tuesday it would submit an indicative non-binding proposal to Van Gansewinkel’s board after due diligence. If it decided to put in a bid, it would make an announcement in about three weeks.
Shanks Group, the London-listed waste management company, has announced its intention to merge with the privately-owned van Gansweinkel Group in a €510m cash and shares deal.
In its statement which was released on 24 May 2016, the British firm had said that “after a period of preliminary due diligence, Shanks will shortly be submitting an updated, indicative non-binding proposal to the supervisory board of Van Gansewinkel for consideration. Accordingly, there can be no certainty that any transaction will occur nor as to the terms of any transaction.”
A combination of Van Gansewinkel with Shanks or Suez Environnement would bring together two of the three largest players in the Dutch recycling market, a consolidation analysts say is needed to reduce over capacity.
Dutch recyclers have struggled due to European laws on reducing waste volumes in the Netherlands and a long-running slump in the domestic construction market.
Van Gansewinkel’s sales fell 2 percent to 945 million Euros in 2015, while core earnings (EBITDA), before exceptional items, fell 18 percent to 82 million Euros, its annual report said.
VGC shareholders will receive €306m in cash and 29 per cent ownership of the combined group.
Therefore, it has been confirmed today i.e. 7th july,2016 Shanks would be merging successfully with Dutch waste group for €510m.
BY: DEVIKA SHARMA
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