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. Last Updated: 07/27/2016

Allied, BFI in $9Bln Garbage Merger

HOUSTON -- Allied Waste Industries Inc. has announced that it will acquire Browning-Ferris Industries Inc. in a $9.1 billion deal.

The deal Monday calls for Allied, the No. 3 U.S. waste hauler, to pay $45 per share in cash for its much larger rival, No. 2 BFI, and to take on about $1.8 billion in BFI debt.

It would be the second deal in a year in the consolidating U.S. waste-management business to feature a smaller hauler taking out a larger competitor. In 1998, USA Waste Services Inc. bought the nation's largest garbage company, Waste Management Inc., for $13.5 billion.

Allied Waste's $1.6 billion 1998 annual revenues were about a third of Houston-based BFI's. Together, the two had combined 1998 revenues of $6.3 billion compared to No. 1 Waste Management's $12.7 billion. The merged company will be known as Allied Waste.