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The Commerce Commission said today it had declined clearance for TransPacific Industries to buy from Ironbridge the South Island solid waste interests of Envirowaste Services and 50 per cent of the shares in Manawatu Waste.
The commission said it would provide a written report on its decision in about two weeks but until then would not provide further comment.
TransPacific executive chairman Terry Peabody said he believed the report would show certain interests could be acquired.
"It is our view that the Commerce Commission's decision means that the commission does not think we should buy them all," he said.
"While obviously we do not agree that the commission should have declined clearance for any of the assets, we are still confident that, once we see the commission's report, the major strategic assets in which we are interested will be available to us."
Envirowaste's South Island interests include ownership of the Fairfield landfill in Dunedin and an interest in a landfill at Kate Valley, north of Christchurch, of which TPI already owns 25 per cent.
TransPacific last year bought Waste Management for $870 million.
This month the Australian listed company agreed to buy Cleanaway, an Australasian waste collection business, from private equity firm Kohlberg Kravis Roberts for A$1.25 billion ($1.42b).
Australian private equity company Ironbridge Capital in December bought Envirowaste, New Zealand's second-largest rubbish collection and disposal company for a price believed to be between $250m and $400m.
Envirowaste also has interests in waste transfer stations and holds contracts for the operation and management of several waste disposal or recycling facilities -- as well as having collection businesses in Nelson/Marlborough, Timaru, Christchurch and Dunedin.
Through Manawatu Waste, Envirowaste has an interest in the Bonny Glen landfill in Rangitikei (TPI owns half already), interests in transfer stations in Palmerston North and Wanganui and waste collection businesses in a number of central North Island towns.
"Obviously, we would like to buy all of these interests and we will be looking at the commission's written decision and the options and opportunities available to us over the next few weeks," Mr Peabody said.
NZ Overseas Investment Office approval has yet to be granted.
- NZPA
