Dubai-based waste services provider Averda has acquired rival Zenath Recycling & Waste Management in a consolidation of the UAE's waste management sector.
Law firm Baker McKenzie Habib Al Mulla said it advised Zenath Trading Enterprises, the principal shareholder of Zenath Recycling & Waste Management, on the sale to Averda.
Zenath Recycling provides waste collection and disposal services to more than 1,000 customers across Dubai.
Baker McKenzie Habib Al Mulla said the sale will enable the company to enhance its long-term value and market position as a leading waste services operator in the UAE.
It will also see Averda deliver on its growth in the Middle East market, inheriting a fleet of 38 trucks, which include 11 compactors, 11 chain loaders and nine hook loaders as well as a workforce of 150 employees, as part of the sale.
Omar Momany, UAE head of corporate and M&A, Baker McKenzie Habib Al Mulla, said: “We are delighted to have been able to support Zenath Trading Enterprises in this strategic sale to Averda, reinforcing its market position as a leading waste services operator in the UAE.
“The Middle East market is ripe for consolidation across key growth sectors, buoyed by recent reforms to facilitate foreign investment. This transaction positions Zenath Trading and Averda to both capitalise on the growing waste management industry in the UAE and wider Middle East.”
Last month, it was reported that Dubai-based Averda International is conducting preliminary talks with banks about a potential initial public offering (IPO) on the London Stock Exchange (LSE), which could value it at up to $700 million.
