A federal judge on Wednesday blocked the planned $367 million buyout of Waste Control Specialists by radioactive waste management rival EnergySolutions.
The merger announced in November 2015 would have brought WCS’ waste storage complex in West Texas into EnergySolutions’ broader portfolio of nuclear service offerings. But, in an antitrust lawsuit filed last November, the Justice Department said the deal would undercut competition that have kept consumer costs down and service up.
Federal attorneys appeared to persuade Judge Sue Robinson in a 10-day bench trial that ended in early May in U.S. District Court in Delaware. In her order Wednesday, she “enjoined and restrained” the merger as laid out by the Nov. 18, 2015, agreement by their holding companies.
Robinson’s full opinion had not been released as of Wednesday. Her office said the judge has set a June 28 deadline for it to be released, giving the parties a week to reach agreement on redactions to the public version of the document.
The ruling is a win for competition with high barriers to entry, acting Assistant Attorney General Andrew Finch, with DOJ’s Antitrust Division, said in a prepared statement: “While EnergySolutions’ preference was to buy its main rival rather than continue to compete to win business, today’s decision ensures that customers will benefit from the competitive process.”
Waste Control Specialists parent company Valhi said the companies are evaluating whether to appeal the decision, while EnergySolutions’ separate statement did not mention a possible appeal.
“While this acquisition would have added a Class B and C Low-Level Radioactive Waste disposal facility to our portfolio, we remain confident in our capability as a company to lead the industry in radioactive waste management and decommissioning,” EnergySolutions President and CEO David Lockwood said in a press release. “We look forward to working with WCS to best serve the interests of our customers.”
It was not immediately clear how this ruling would mean for the future of Waste Control Specialists, which has endured steep losses in recent years — including its plans for interim storage of used fuel from U.S. commercial power reactors. The company, which has endured steep losses in recent years, in April asked the Nuclear Regulatory Commission to suspend review of its application to build and operate a storage facility for the waste. At the time, Waste Control Specialists said it was waiting for closure of the merger before moving ahead with the application.