FOR IMMEDIATE RELEASE AT
MONDAY, JULY 14, 1997 (202) 616-2771
TDD (202) 514-1888
JUSTICE DEPARTMENT AND TEXAS ATTORNEY GENERAL REQUIRE SALE OF
LANDFILL SPACE IN SETTLEMENT WITH ALLIED AND USA WASTE
Without Settlement, Residents and Businesses of Tarrant County
Would Have Paid More for Waste Hauling and Disposal Services
WASHINGTON, D.C. -- In a joint antitrust settlement, the
Department of Justice and the Texas Attorney General's Office
today cleared a proposed Texas landfill acquisition involving two
of the largest waste hauling and disposal companies in North
America--Allied and USA Waste--after the companies agreed to
divest landfill disposal space and meet other conditions to
eliminate antitrust concerns.
The Department's Antitrust Division and the Texas Attorney
General said that if Phoenix-based Allied's acquisition of
Houston-based USA Waste's Crow Landfill had gone forward as
originally proposed, it would have eliminated head-to-head
competition in the Tarrant County area of Texas--where Ft. Worth
is located--resulting in higher prices for waste disposal and
hauling.
The Department said that under the restructured deal,
residents and businesses in Tarrant County will continue to enjoy
the benefits of competition for municipal solid waste landfill
disposal services.
Joel I. Klein, Acting Assistant Attorney General of the
Department's Antitrust Division, said, "This is the latest in a
series of settlements in the waste industry which preserves
competition and protects consumers from higher prices. Without
this settlement, businesses and residents of Tarrant County would
have suffered increased prices for waste hauling and disposal
services."
Municipal solid waste includes residential and commercial
trash and garbage. Municipal solid waste generated in Tarrant
County is collected by haulers that transport the waste to nearby
landfills for disposal.
Allied is the fourth largest hauling and disposal company in
the U.S., with operations in 22 states. In 1996, it had sales of
about $806 million and served 1.8 million customers.
USA Waste is the third largest waste management company in
North America, with operations in 36 states, the District of
Columbia, Canada, Mexico and Puerto Rico, and sales of $1.3
billion in 1996.
A complaint and proposed settlement were filed today in U.S.
District Court in Fort Worth, Texas by the Department's Antitrust
Division and the Texas Attorney General. The complaint stated
that the acquisition, as originally proposed, would have
substantially lessened competition in the Tarrant County area by
concentrating the landfill capacity in that area into the hands
of only three companies--Allied, Waste Management and the City of
Farmers Branch.
The proposed settlement, which must be approved by the
court, will maintain competition by requiring:
* The divestiture of more than 1.4 million cubic yards of
landfill space over a 5-10 year period at the two
landfills Allied will own after the acquisition in the
Tarrant County area.
* The acceptance of waste at each of the two Allied
landfills in the Tarrant County area from haulers not
affiliated with Allied on non-price terms and
conditions identical to those provided to Allied.
* The sale of additional landfill space in the event that
Allied expands its capacity at the Crow Landfill or
develops a new landfill near the Crow Landfill within
the next 10 years.
As required by the Tunney Act, the proposed consent decree
will be published in the Federal Register, along with the
Department's competitive impact statement. Any person may submit
written comments concerning the proposed decree during a 60-day
comment period to J. Robert Kramer II, Chief, Litigation II
Section, Antitrust Division, U.S. Department of Justice, 1401 H
St., N.W., Suite 3000, Washington, D.C. 20530 (202/307-0924).
At the conclusion of the 60-day comment period, the U.S.
District Court in Fort Worth, Texas may enter the consent decree
upon a finding that it serves the public interest.
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