ADQ in advanced talks to acquire Spanish waste management firm Urbaser

ADQ advances to the second phase of Urbaser acquisition process: Abu Dhabi’s ADQ moved to the second phase of the auction for Spain’s waste management firm Urbaser, owned by Platinum Equity, Reuters reports, citing unnamed sources as telling Spanish outlet Expansion. The bid, which could value Urbaser at EUR 5 bn (including debt), sees ADQ up against Blackstone and EQT, after beating out contenders like I Squared, KKR, Macquarie.

What’s next? The three finalists now have access to more detailed information about Urbaser’s business to conduct thorough due diligence and finalize their offers. ADQ could partner with Blackstone or EQT, given the size of the capital required, according to the source. Binding bids are due by February.

ICYMI- On 25 November, Platinum Equity received seven non-binding offers for Urbaser, with ADQ, Blackstone, and EQT meeting expectations.

A 4th finalist? Japanese firm Itachu’s environmental arm also made an offer, but it is unclear if the company has advanced to the next phase.

Background: Since acquiring Urbaser for EUR 3.5 bn from China’s CNTY in 2021, Platinum Equity has made EUR 1 bn in divestments to pave the way for future buyers.