Canada's Secure Energy to divest assets for C$1.15 bln on Competition Tribunal's ruling

Waste Connections

11/12/2023 17:09

Dec 11 (Reuters) - Waste management firm Secure Energy
Services  SES.TO  said on Monday it will divest some assets in
Western Canada for a total of C$1.15 billion ($847.21 million)
to fulfill Competition Tribunal's conditions for its merger with
Tervita. 
    The latest deal with Waste Connections  WCN.TO  is expected
to close in the first quarter of 2024 after regulatory approval.
It has agreed to pay Secure C$1.075 billion in cash and about
C$75 million in certain adjustments. 
    Secure Energy said it was ordered by the Canadian
Competition Tribunal to divest facilities owned by waste
management services firm Tervita following their merger in 2021.
 
    Following the completion of the deal, Waste Connections will
acquire Secure Energy's portfolio of 30 energy waste treatment,
recovery, and disposal facilities in Western Canada, with a
combined annual revenue of around C$300 million.
    Adjusting for the impact of the sale, Secure lowered its
2024 capital spend forecast and said it now expects to spend
C$60 million on sustaining capital and C$15 million on settling
the firm's retirement obligations, down from a previous forecast
of C$85 million and C$20 million, respectively. 
   
    
   ($1 = 1.3574 Canadian dollars)

 (Reporting by Vallari Srivastava; Editing by Shinjini Ganguli)
 ((Srivastava.Vallari@thomsonreuters.com;))