Shanks has announced that it has received all necessary approvals from the relevant competition authorities in the Netherlands in relation to the proposed merger with Van Gansewinkel Groep B.V. (VGG).
The Board of Shanks Group, a UK-headed international waste to product business has announced that the Group has now received all necessary approvals from the relevant competition authorities in the Netherlands in relation to the proposed merger with Netherlands-headed waste management company Van Gansewinkel Groep B.V. (VGG).
This follows the receipt of approval from the relevant competition authorities in Belgium on 25 January 2017 and means that the Group now has all the competition authority and shareholder approvals necessary to proceed with the merger. It is expected that the process for Completion and the launch of the Combined Group with a new brand will take around two weeks. Completion is subject to, among other things, approval of a prospectus by the UK Financial Conduct Authority (FCA).
– 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, said Peter Dilnot, Group Chief Executive of Shanks.
The merger with VGG is wholly aligned with Shanks’ strategy to be a leading international waste-to-product company. The combined entity will be well positioned to meet the needs of the emerging circular economy and will have the scale, capability and expertise to deliver long term sustainable growth and attractive returns. The new business will be able to offer its customers an extensive range of recycling technologies and services.
As previously outlined, the Shanks Board believes that the Combined Group can be expected to achieve annual risk weighted pre-tax cost synergies of approximately EUR 40 million in the third full year following Completion. Given the ongoing turnaround of VGG, as shown in its performance for the year ended 31 December 2016, and the expected cost synergies, the Board of Shanks expects the merger to be significantly earnings enhancing in the second full financial year following Completion.
Extensive integration planning has been underway while the Group has been awaiting competition authority clearance. The new senior management team, reflecting skills and experience from across both businesses and from outside industries, has been selected and will be effective from the start.
Plans are in place to take control of the new entity efficiently, with governance, treasury and other processes ready to be implemented immediately following Completion. A new brand will also be launched on Completion that reflects both the heritage and the positioning of the Combined Group.
As the merger is classified as a reverse takeover under the FCA’s Listing Rules, Shanks will apply for re-admission of the Combined Group to the premium listing segment of the FCA’s official list and to trading on the London Stock Exchange upon completion. A further prospectus in relation to re-admission will be published following approval by the FCA.