U.S. Opposes Latest Merger of Trash Haulers

Waste Management Inc.’s plan to acquire smaller rival Eastern Environmental Services Inc. for about $1 billion is being opposed by the Justice Department, mainly because the combination would eliminate a bidder for New York City’s trash-removal contract, the companies said Tuesday.

Eastern and Waste Management said they’re trying to persuade antitrust officials to change their minds, either in court or through further talks.

“We remain confident in our position on the disputed markets, and ultimately expect the merger to be consummated,” said John Drury, chief executive of Waste Management, the nation’s largest trash hauler.

But some experts said the companies will have trouble overcoming the antitrust objections.

The Justice Department is stepping back after approving a series of waste-services acquisitions, including Waste Management’s $24.9-billion merger this year with USA Waste Services Inc., the two biggest U.S. trash haulers.

The Eastern-Waste Management deal announced in August has been under investigation since October by New York state Atty. Gen. Dennis Vacco’s office for its impact on New York City’s commercial waste-hauling charges.

The companies are two of three finalists for the city’s $2-billion trash-hauling contract that it seeks to award to two companies.

“We’re trying to keep the bidding process competitive,” said David Corvette, a spokesman for Vacco, who joined the Justice Department suit filed Tuesday in U.S. District Court for the Eastern District of New York. “To have [Eastern and Waste Management] still in the running for the same contract is anti-competitive.”