01/19/2016 08:18 EST | Updated 01/19/2017 00:12 EST

Waste Connections buying Progressive Waste in all-stock deal

THE WOODLANDS, Texas — Waste Connections is buying Progressive Waste Solutions Ltd. in an all-stock deal that creates a waste management company worth more than $8 billion.

The transaction is structured as a reverse merger. Waste Connections Inc. shareholders will own about 70 per cent of the combined business, with Progressive Waste stockholders owning approximately 30 per cent.

The combined company will use the Waste Connections name. The board will include Waste Connections' five current directors and two members from Progressive Waste's current board. Once the deal closes, the business will be domiciled in Canada.

The buyout is expected to generate about $50 million in annual cost savings within the first year after closing.

Both companies' boards approved the transaction, which is target to close in the second quarter.

The Associated Press