Shanks has received all necessary approvals from the Netherlands competition authorities for its proposed merger with Van Gansewinkel Groep BV, the Group confirmed today (15 February).
This follows receipt of approval from the relevant competition authorities in Belgium on 25 January, and means that Shanks can proceed with the merger.
It is expected that the process for completion and launched of the Combined Group with a new brand will take around two weeks.
At present, Van Gansewinkel is considered the largest recycling business in the Benelux region, an area which comprises of Belgium, the Netherlands and Luxembourg.
Shanks states the merger is aligned with its strategy and means it is ‘well positioned’ to meet the needs of emerging Circular Economy proposals.
The company’s board believes that the Combined Group can be expected to achieve annual risk weighted pre-tax operating cost savings of an estimated €40 million in the third full year following completion.
It adds that given the ‘ongoing turnaround’ of Van Gansewinkel, shown in its performance for the year ended 31 December 2016, the merger is expected to boost earnings in the second full financial year after completion.
“Once the merger formally completes, we will begin integrating the businesses at pace.”
Peter Dilnot, chief executive
Peter Dilnot, Group chief executive of Shanks, said: “We are delighted to have cleared the final regulatory hurdle so that we can complete the transformational merger of Shanks and VGG. This strategic deal will bring two strong companies together to create a new international waste-to-product leader at the heart of the emerging circular economy. The Combined Group will operate across nine countries with unique capabilities and the scale, capability and expertise to grow profitably over the longer-term.
He added: “A huge amount of pre-merger work has been undertaken by the Shanks and VGG management teams and our integration planning is well advanced. Once the merger formally completes, we will begin integrating the businesses at pace. As previously announced, we expect to deliver €40m of cost synergies while positioning the new combined business for sustainable long-term growth. On Completion we will be launching a fresh new brand that captures our heritage and reflects our future vision.
“This is an exciting time for both Shanks and VGG, and we look forward to creating a new company that delivers sustainable value for customers, shareholders and the communities we serve.”