Waste Management Mulls $3B Sale Of RNG Business: Report
Portfolio Pulse from Lekha Gupta
Waste Management, Inc. (NYSE:WM) is considering selling its renewable natural gas (RNG) business for approximately $3 billion. The company is collaborating with JP Morgan Chase & Co. (NYSE:JPM) to find potential buyers. The RNG unit currently generates $150 million in EBITDA and is projected to contribute over $500 million by 2026. If successful, this would be a significant sale in the U.S. RNG industry. Investors can gain exposure to WM through VanEck Environmental Services ETF (NYSE:EVX) and iShares U.S. Utilities ETF (NYSE:IDU).
May 17, 2024 | 11:18 am
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POSITIVE IMPACT
VanEck Environmental Services ETF holds Waste Management shares, and the potential sale of WM's RNG business could impact the ETF's performance.
As EVX holds shares of Waste Management, the potential sale of WM's RNG business could positively impact the ETF's performance due to the expected cash influx and focus on core operations.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
iShares U.S. Utilities ETF holds Waste Management shares, and the potential sale of WM's RNG business could impact the ETF's performance.
As IDU holds shares of Waste Management, the potential sale of WM's RNG business could positively impact the ETF's performance due to the expected cash influx and focus on core operations.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
JP Morgan Chase & Co. is assisting Waste Management in exploring the sale of its RNG business, which could enhance its advisory revenue.
JP Morgan's involvement in a high-profile transaction like this could boost its advisory revenue and enhance its reputation in the market.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Waste Management is considering selling its RNG business for $3 billion, which could significantly impact its financials and market position.
The sale of the RNG business could provide a significant cash influx and allow Waste Management to focus on its core operations. The projected growth in EBITDA for the RNG unit also suggests a high valuation, which could positively impact WM's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100