US Covanta wraps up USD 5.3bn transition to private co

Swedish investment firm EQT AB (STO:EQT) has completed the acquisition of US waste-to-energy specialist Covanta Holding Corp in a deal valued at about USD 5.3 billion (EUR 4.67bn), including debt.

EQT has committed to increasing investments across Covanta’s business, including upgrading equipment, investing in host communities and integrating into more sustainable aspects of waste disposal, according to the press release published Tuesday.

Following completion, the US firm’s shares stopped trading on the New York Stock Exchange (NYSE).

The transaction was cinched in the middle of July. It valued Covanta at about USD 2.69 billion in total equity terms, based on the number of shares outstanding. The agreed consideration of USD 20.25 per share represented an about 37% premium to the acquired company’s unaffected share as of the day prior to initial media speculation of a transaction.

Covanta provides waste and energy solutions, converting around 21 million tons of waste into clean electricity annually. The company claims it is powering one million homes and recycling over 600,000 tons of metal.

(USD 1 = EUR 0.881)

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