#332: JUSTICE DEPARTMENT AND THIRTEEN STATES CLEAR USA WASTE SERVICES INC.'S ACQUISITION OF WASTE MANAGEMENT INC.

FOR IMMEDIATE RELEASE	

AT

THURSDAY, JULY 16, 1998	

(202) 616 2771

TDD (202) 514 1888

 
JUSTICE DEPARTMENT AND THIRTEEN STATES CLEAR


USA WASTE SERVICES INC.'S ACQUISITION OF WASTE MANAGEMENT INC.


 
USA Waste Services Required to Divest Waste Operations in 


21 Geographic Areas


	WASHINGTON, D.C.    The Department of Justice and thirteen state
attorneys general reached a settlement today allowing USA Waste Services Inc.
to go forward with its proposed $13.5 billion acquisition of Waste Management
Inc., after USA Waste agreed to sell waste collection and disposal operations in
thirteen states, covering twenty one metropolitan areas. USA Waste and Waste
Management are two of the nation's largest waste collection and disposal
companies.  

	"Without this settlement, businesses, government entities, and residents in
many local markets would have paid higher prices for waste collection and
disposal," stated Joel I. Klein, Assistant Attorney General in charge of the
Department's Antitrust Division.  "The divestiture ensures consumers will
continue to have the benefits of competition." 

	The Department's Antitrust Division and the state attorneys general filed
suit today in U.S. District Court for the Northern District of Ohio to block USA
Waste's original proposal to acquire Waste Management.  At the same time, a
proposed settlement was filed that, if approved by the court, would settle the
case. 

	The states joined in the lawsuit are: Ohio, Arizona, California, Colorado,
Florida, Kentucky, Maryland, Michigan, New York, Pennsylvania, Texas,
Washington, and Wisconsin. 

	According to the complaint, the proposed merger would substantially
lessen competition for waste collection and disposal services in twenty one
markets.  In most of the markets, the combination of USA Waste and Waste
Management would leave only two or three major competitors.  As a result, those
competitors would be able to coordinate their pricing and more easily raise
prices to their customers. 

	"As originally proposed, the merger would have given USA Waste the
ability to control solid waste disposal and commercial waste collection markets
in many of the largest metropolitan areas of the country, including several in
Ohio," said Ohio Attorney General Betty Montgomery, speaking on behalf of the states. 
"Reducing competition in any industry almost always reduces the quality of
service and leads to higher consumer prices."

	Waste collection firms, like USA Waste and Waste Management, contract to
collect municipal solid waste (i.e., garbage and trash) from residential and
commercial customers.  They transport the waste to disposal facilities such as
transfer stations, incinerators and landfills, which process and legally dispose of
waste for a fee.  USA Waste and Waste Management compete both in waste
collection and waste disposal facilities.  	

	The divestiture includes waste collection and/or disposal operations in the
following areas: Tucson, AZ; Los Angeles, CA; Denver, CO; Gainesville and
Miami, FL; Louisville, KY; Baltimore, MD; Detroit, Flint and Northeast, MI; New
York, NY; Akron, Canton, Cleveland and Columbus, OH; Portland, OR; Allentown,
Philadelphia and Pittsburgh, PA; Houston, TX; and Milwaukee, WI.

	USA Waste Services Inc., based in Houston, is the third largest hauling and
disposal company in the United States, with sales of $2.6 billion in 1997.

	Waste Management Inc., is headquartered in Oak Brook, Illinois.  In 1997, it
had sales of  $9.2 billion.

	As required by the Tunney Act, the proposed consent decree resolving the
USA Waste/Waste Management lawsuit will be published in the Federal Register,
along with the Department's competitive impact statement.  Any person may
submit written comments concerning the proposed settlement during a 60 day
comment period to J. Robert Kramer II, Chief, Litigation II Section, Antitrust
Division, U.S. Department of Justice, 1401 H Street, NW, Suite 3000, Washington,
D.C.  20008 (202/307 0924).

	At the conclusion of the 60 day comment period, the U.S. District Court for
the Northern District of Ohio may enter the consent decree upon finding that it
serves the public interest.

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