A shareholders' meeting is to be held on December 13 to green light the sale of a 75% stake to American-owned capital equity firm Kohlberg Kravis Roberts & Co.
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DSD was set up to help packaging waste producers comply with the 1990 German packaging regulations, which introduced producer responsibility on packaging waste.
The organisation introduced a “Green Dot” system to finance the collection of packaging waste from German households. DSD now regularly recycles over 70% of packaging waste materials, and controls about 80% of the packaging waste recovery market.
However, as a result of pressure from the Federal Cartel Authority, DSD is now to be sold to a “neutral” organisation, effectively abolishing its not-for-profit status.
The Authority had said that because waste management companies owned shares in DSD, the organisation may have been abusing its monopolistic position.
DSD international communications director Helmut Schmitz told letsrecycle.com: “We have to sell to a profit-making company to beat the anti-trust issue. The green dot will not change, but we will be the first green dot organisation that makes a profit.”
For more on DSD's green dot and the reasons behind the organisation's sale, see this letsrecycle.com feature.
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