Republic CEO James O´Connor said he expects the newly created giant to save $150 million per year by eliminating duplication. He´s aware of the dangers of not prioritizing which projects should come first.

And it´s no surprise that Waste Connections with its big war chest has gobbled up many of the assets that Republic and Allied were forced to divest by the U.S. Department of Justice. Republic and Waste Connections have been among the strongest waste management companies going, and early indications are they´ve become stronger.

Meanwhile, Waste Management said it´s laying off close to 1,000 workers. Waste Management of course lost out on its bid to buy Republic while the Allied deal was in the works.

Waste Management´s woes should be a reminder to Republic and Waste Connections that it´s paramount to smoothly integrate their new operations. In this horrible economic climate, there´s even less room for error than usual.

(Feb. 16 issue)