Report Looks at M&A in the European Waste Management Industry

The European waste management market is a billion dollar market with plenty of activity taking place in the competitive structure as growth opportunities are defined by value-added services offered in the market. A key feature of the market has been the growing number of mergers and acquisitions, with more than 20 M&As having occurred in the last three years.

New analysis from Frost & Sullivan, Mergers and Acquisitions in the European Waste Management Market, states that M&As in the waste management market in Europe have been a dominant route for companies looking to grow in this sector. The consulting firm notes that over the past three years there have been more than 20 merger and acquisition deals that have taken place.

At the same time, the maturity of various markets on the continent is forcing more waste management firms to look elsewhere for deals.

"The rising maturity in some established European markets, such as Scandinavia and the Alpine region, has compelled market participants to venture into new and potential growth markets," says Frost & Sullivan Research Analyst Karthikeyan Ravikumar. "Legislation has also played a major role in the changing market dynamics; specifically, the landfill directive which has driven waste volumes in Europe away from landfills towards alternate treatment methods."

The current economic slowdown has resulted in a reduction in industrial production and this is further expected to limit the quantity and nature of industrial and hazardous waste generated in the European Union. The waste management markets in key regions, such as France, the United Kingdom and Germany have reported a reduction in waste volumes collected and treated. Consequently, waste management companies operating in these regions have witnessed an associated decline in margins and revenues.

"Growing competition and market maturity are making it difficult for tier III participants to sustain in this market," says Ravikumar. "This situation is expected to force them to align with a larger company to enhance the quality of their offering in the market."

In addition, the current economic slowdown is expected to re-align the valuation price of companies, thereby making it an ideal time for M&As. Niche participants will merge with established companies to survive the economic downturn. High growth potential in the Central and Eastern Europe region will boost M&A activities as more companies attempt to venture into this region.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an e-mail to Chiara Carella, Corporate Communications, at chiara.carella@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.