U.S. sues to stop EnergySolutions from buying smaller rival (updated)
17/11/2016 02:42
(Adds response from EnergySolutions and Valhi)
WASHINGTON, Nov 16 (Reuters) - The Justice Department filed
a lawsuit on Wednesday aimed at stopping EnergySolutions from
buying rival Waste Control Specialists, the agency said in a
statement.
Both companies dispose of low level radioactive waste, or
LLRW, and are each other's most significant competitor in 36
states and Washington, DC, the department said. The waste is
generated by hospitals, nuclear power generators and others.
"Since opening its LLRW disposal facility in 2012, Waste
Control Specialists has provided EnergySolutions the only real
competition it has ever faced," said Acting Assistant Attorney
General Renata Hesse of the department's Antitrust Division in a
statement.
She said that the competition allowed customers to negotiate
better prices.
The department valued the deal at $367 million.
EnergySolutions and WCS's holding company Valhi Inc VHI.N
said on Wednesday they would contest the DoJ's lawsuit.
urn:newsml:reuters.com:*:nMKWw9vpDa
The companies said the DoJ has failed to recognize that
price competition exists in the LLRW disposal market and that
the merger is in the best interest of the nuclear industry.
(Reporting by Diane Bartz; additional reporting by Gaurika
Juneja in Bengaluru; Editing by Bernard Orr and Sunil Nair)
((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;))
Keywords: WASTE CONTROL SPECIALISTS M&A/ENERGYSOLUTIONS (UPD