buy, page-8

re: cleanaway I haven't heard anything about BIL's Cleanaway taking over TOX. When has that rumour surfaced???

I've got to say, i don't think it's all that likely, mainly because Brambles are looking to divest Cleanaway, as opposed to making acquisitions. Brambles' CEO Turner has repeatedly stated that they're trying to divest Cleanaway and focus on the CHEP business so it doesn't make any sense that Cleanaway would be looking for acquisitions with the prospect of being divested by the parent company in the not-too-distant future. Transpacific & CHAMP private equity have already publicly flagged their intention to potentially acquire Cleanaway when Brambles divests it.

If TOX was to become a takeover target, my thinking is that it would come from TPI, BUT only if and after TPI/CHAMP manage to acquire Cleanaway. TPI has shown since listing it is acquisition hungry, (especially in the waste management business), and they aren't afraid of taking on debt to make the acquisitions. Waste management is TPI's highest margin business by a long way, and TOX is showing some great EBITDA margins at the moment.

So, IMO, if someone's going to attempt to buy out TOX, it'll be TPI and not BIL/Cleanaway, and it'll more likely be in the medium term and not the short term future.