Florida-based disposal company Republic Services said Monday it will buy Phoenix-based Allied Waste Industries in a $6.07 billion stock deal that would combine the second- and third-largest players in the industry, The Associated Press reported.
The new company will be called Republic Services Inc. with headquarters in Phoenix.
Republic Services Inc., based in Fort Lauderdale, will pay Allied Waste shareholders 0.45 worth of a Republic share for each share held, valued at $14.04 per share based on Republic's Friday closing stock price of $31.19.
Based on the nearly 432.5 million Allied shares outstanding at April 24, the deal represents a nearly 4 percent premium to Allied's closing stock price Friday.
Shareholders of Allied Waste will own 52 percent of the combined company, which will be led by Republic Chairman and Chief Executive James E. O'Connor. Allied's Don Slager will become president and chief operating officer.