Waste Management Inc. (NYSE:WM) is currently under a supplemental information request (SIR) from the Competition Bureau of Canada regarding its proposed merger with Stericycle, Inc., as disclosed in a recent SEC filing. The request, received on Monday, extends the waiting period under the Canadian Competition Act until 30 days after the companies have responded, unless terminated sooner by the bureau.
The companies are confident in their ability to promptly address the SIR and are working cooperatively with the Competition Bureau. The merger, previously announced on June 3, 2024, is also subject to other customary closing conditions, including clearance under the foreign investment laws of Spain.
Waste Management and Stericycle have already received necessary antitrust clearances from the United States, Portugal, the UK, and Spain. Additionally, Stericycle stockholders have approved the merger on August 14, 2024. Despite the regulatory hurdle in Canada, Waste Management anticipates completing the merger as early as the fourth quarter of 2024.
The merger remains subject to various regulatory approvals and conditions, but both companies are moving forward with the process. This development is part of the ongoing narrative of Waste Management's expansion and consolidation within the refuse systems industry, where regulatory compliance is a significant step in finalizing such transactions.
In other recent news, Waste Management Inc. is progressing towards the acquisition of Stericycle Inc (NASDAQ:SRCL)., having received antitrust clearance from the U.S., UK, and Portugal authorities. The merger, which is expected to enhance Waste Management's portfolio, is anticipated to be finalized as early as the fourth quarter of 2024, subject to further clearances. Waste Management also reported a record 30% operating EBITDA margin and double-digit EBITDA growth in the second quarter of 2024, attributing this success to effective pricing strategies and operational efficiencies.
The company expects to maintain around 10% growth for the full year 2024, driven by price and cost optimization in their core business segments. Analysts from BMO Capital Markets and Baird have adjusted their price targets for Waste Management following the company's Q2 results, maintaining their respective Market Perform and Neutral ratings.
InvestingPro Insights
As Waste Management Inc. navigates through the regulatory process for its merger with Stericycle, Inc., investors keep a keen eye on the company's financial health and market position. According to InvestingPro data, Waste Management boasts a strong market capitalization of $83.16 billion, underscoring its significant presence in the industry. The company's revenue growth has been steady, with a 4.77% increase over the last twelve months as of Q2 2024, and a slightly higher quarterly growth rate of 5.53%. This growth is a testament to Waste Management's robust business model and operational efficiency, which is also reflected in their solid gross profit margin of 39.14%.
InvestingPro Tips highlight that Waste Management has maintained its dividend payments for an impressive 27 consecutive years, with a recent dividend growth of 7.14%, signaling a strong commitment to shareholder returns. Additionally, the company is recognized as a prominent player in the Commercial Services & Supplies industry. With analysts predicting profitability for this year and the company having been profitable over the last twelve months, Waste Management's financial stability is clear.
Investors interested in a more in-depth analysis will find additional InvestingPro Tips for Waste Management, providing further insights into the company's performance and market potential. For those looking to make informed decisions based on real-time metrics and expert analysis, visiting the InvestingPro platform offers an extensive array of tips, including several more beyond the two mentioned here.
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