Allied Will Divest to Win OK to Buy BFI

Allied Waste Industries Inc. won federal antitrust clearance for its purchase of Browning-Ferris Industries Inc. after agreeing to sell waste collection and disposal operations in 13 states. The Justice Department said the $9-billion deal as originally proposed would have been anti-competitive, resulting in higher prices for waste services to residents, businesses and government entities. Houston-based Allied Waste is the U.S.’ second-largest garbage hauler, and Scottsdale, Ariz.-based BFI is the third-largest. Operations to be sold include those in every market in which there would be a significant competitive overlap in the companies’ waste operations, and also include six of what would be the leading 10 markets for the combined firm--Atlanta, Boston, Chicago, Dallas, Detroit and Oakland. In most of the markets, the original deal would have left only two or three major competitors, the government had said. BFI shareholders approved the acquisition last week. News of the government approval came after the markets closed. Allied Waste shares fell 25 cents to close at $18.94, and BFI shares closed unchanged at $44.25, both on the New York Stock Exchange.