LYCOS RETRIEVER 
Allied Waste Industries: Rabanco Company
built 214 days ago
Allied Waste's acquisition of BFI came shortly after USA Waste Services purchased the formidable Waste Management, the largest waste handling company in the United States (USA Waste kept the Waste Managment name intact). At that time, the Justice Department came under fire for being too easy on USA Waste Services--to gain the buyout approval, USA Waste only had to divest assets that totaled $275 million in annual revenue. Perhaps due to that criticism, the Justice Department was tougher in its requirement when it came to AWI's purchase of BFI. In July 1999, AWI agreed to divest some 50 landfills, transfer stations, and hauling operations. These assets totaled roughly $197 million in annual revenues, a proportionally much bigger divestiture than the one required of USA Waste. In addition, AWI had to sell its interest in three American Ref-Fuel plants (American Ref-Fuel specializes in the conversion of waste to energy).
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Analysts ... worry that Allied Waste operates in more competitive markets than some of its competitors. About 70 percent of Allied Waste's markets are competitive, and in the others, the company has an exclusive contract, or franchise, to handle waste for a municipality.
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Allied Waste started the 1990s with its acquisition of Sanco, a solid waste company that served northeast New Mexico. Fred Ferreira said of the acquisition: "Sanco exemplifies AWI's acquisition strategy; to continue with a national expansion program of acquiring profitable and well-managed waste collection and disposal companies."
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