Waste Management eyes Cleanaway

Waste Management will be among those chasing the sale of Australia's largest waste disposal business Cleanaway, but is calling an acquisition a long shot.

Cleanaway Australia has been put on the block by Brambles, the world's largest supplier of pallets used to move and store goods, as it looks to focus on its more profitable pallet business, Chep, and document storage division Recall.

This presents Waste Management, the largest waste collection and landfill company in this country, with a long-awaited opportunity for a bigger bite of the Australian market.

Managing director Kim Ellis said the company wanted to be an important player across the Tasman "and we're not there yet".

But he played down the company's chances of sewing up a deal for Cleanaway.

"Obviously, we'll have a good crack at it but I don't feel overly optimistic given the money that's sloshing around in the private equity sector."

However, there was no reason why it could not finance an acquisition.

Last month, Brambles sold its Cleanaway Germany business for $893 million. Its Australia and UK units are worth as much as A$1.7 billion ($1.78 billion), says Merrill Lynch.