(Adds details on the deal, share movement)
June 24 (Reuters) - Waste Management Inc on Wednesday lowered its bid to buy smaller rival Advanced Disposal Services Inc to about $2.8 billion from $3 billion.
Under the terms of the deal, the waste management services provider would acquire Advanced Disposal for $30.30 per share in cash, down from its earlier offer of $33.15 apiece.
The revised offer represents a discount of about 2.7% to Advanced Disposal’s Tuesday closing share price of $31.16.
The company expects the acquisition will lead to annual cost and capital expenditure savings of more than $100 million announced previously.
The two companies also said they would sell some of their assets to environmental services firm GFL Environmental for $835 million, to meet the requirements of the U.S. Department of Justice for closing the deal.
Houston-based Waste Management, which provides waste management environmental services, owned or operated 247 solid waste landfills as of December 2019.
Advanced Disposal, based in Ponte Vedra, Florida, provides non-hazardous solid waste collection, transfer, recycling and disposal services in 16 states and the Bahamas.
Centerview Partners LLC is acting as financial adviser to Waste Management, while UBS Investment Bank advising Advanced Disposal.
Waste Management shares were up about 1% at $104.55 in premarket trade, while Advanced Disposal shares were down 3.4% at $30.10. (Reporting by Sanjana Shivdas in Bengaluru; Editing by Vinay Dwivedi)