Metal Management has agreed to a buyout from Aussie recycler Sims Group. The companies state that their union would form the world's largest publicly traded recycler. I think that Nucor
One of the reasons I like this tie-up is that the companies share similar financial characteristics. Both display high sales growth, strong profitability, and low debt. I would expect all of these characteristics to persist through a merger, because this is an all-stock deal.
The stock swap means there won't be any credit-crunch-induced nail biting a la TXU
I also like this deal because of the proposed management arrangement. Dienst would remain CEO of the combined group, and, as I noted in May, he not only speaks but also acts as a steward of shareholder capital. With a larger North American asset base at his disposal (Sims' man will be heading up European and Australian operations), I would expect very good things to come of this new Metal Management.