Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Agreement to Divest Waste Collection Assets in New Jersey, Georgia Enables Star Atlantic’s Planned Acquisition of Veolia, (Nov 15, 2012)

By E. Darius Sturmer, J.D.

Star Atlantic Waste Holdings L.P. and Veolia ES Solid Waste Inc. have agreed to divest commercial waste collection or disposal assets in northern New Jersey, central Georgia, and the Macon, Georgia, metropolitan area in order to resolve Department of Justice Antitrust Division charges that Star Atlantic’s proposed $1.9 billion acquisition of Veolia violated federal antitrust law, the Antitrust Division has announced.

A complaint filed by the government against the companies on November 15 contended that the transaction as originally proposed would have resulted in higher prices for the collection of municipal solid waste from commercial businesses or the disposal of waste in these areas. However, a proposed settlement containing the divestitures, which was filed contemporaneously, would resolve these competitive concerns and end the lawsuit, if approved by the federal district court in Washington, D.C.

According to the complaint, Star Atlantic and Veolia are two of only a few significant firms providing commercial waste collection or municipal solid waste disposal services in the geographic areas of northern New Jersey, central Georgia, and Macon. The proposed acquisition would have eliminated a major competitor in each of these areas and resulted in higher prices and poorer service for consumers, the government contended.

Under the terms of the proposed settlement, the companies will divest three specified transfer stations in northern New Jersey; a landfill and two transfer stations in central Georgia; and three commercial waste collection routes in the Macon metropolitan area. Each asset to be divested is currently owned by Veolia. To maximize the potential operational effectiveness of each purchaser of the divestiture assets, Star Atlantic and Veolia must divest to a single buyer the three transfer stations in northern New Jersey. Likewise, they must divest to a single purchaser the designated Georgia transfer stations and landfill and the specified commercial waste routes in the Macon metropolitan area.

The case is No. 1:12-cv-01847.

James W. Lowe (Wilmer Cutler Pickering Hale and Dorr LLP) for Star Atlantic Waste Holdings, L.P. David Laing (Crowell & Moring) for Veolia Environnement S.A.

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