UK-listed waste company Shanks has completed its €497 million (US$528 million) takeover of Van Gansewinkel Group (VGG) of the Netherlands, renaming the new combined entity Renewi.

The merger with VGG is wholly aligned with Shanks’ strategy to be a international waste-to-product company. The combined entity will be well positioned to meet the needs of the emerging circular economy and will have the scale, capability and expertise to deliver long term sustainable growth and attractive returns.

Renewi will be a waste-to-product company ideally positioned to be part of the solution to some of the main environmental problems facing society today: reducing waste, avoiding pollution, and preventing the unnecessary use of finite natural resources. Their combined recycling capabilities will contribute to preserving the environment by transforming waste into valuable new products and raw materials. The circular economy aims to eradicate waste and this is fully aligned with Renewi’s vision to “waste no more”.

Shanks that the Combined Group can be expected to achieve annual risk weighted pre-tax cost synergies of approximately €40 million (US$42 million) in the third full year following completion. Given the ongoing turnaround of VGG, as shown in its performance for the year ended 31 December 2016, and the expected cost synergies, Shanks expects the merger to be significantly earnings enhancing in the second full financial year following completion.

Peter Dilnot, Chief Executive Officer of Renewi, said:

“Renewi brings together Shanks and Van Gansewinkel to create a new, international waste-to-product leader. By giving new life to used materials, we will protect the world from contamination, preserve finite natural resources, and enable customers to meet their sustainability goals. With our deep international expertise we also provide them with an extensive product range, combined with local service and attention.

The circular economy is something that we are passionate about and this is captured by Renewi’s fundamental vision to ’waste no more’.”