06/03/30 French fight looms for Aussie Cleanaway (Evening Standard Via Thomson Dialog NewsEdge)

FRENCH-OWNED waste management operator Sita has thrown its hat in the ring as a bidder for Brambles' Cleanaway business in Australia in a deal that could be worth GBP330 million.

Sita is already Australia's thirdlargest waste company but has struggled to achieve efficiencies of scale in the small market, a problem managing director Philippe Maillardsays the acquisition of Cleanaway would address.

But Sita may find itself in a bidding war with compatriot Collex, the country's second-largest operator.

Brambles last month announced a major reorganisation of its business that includes creating a new holding company for its CHEP pallet division and document storage firm Recall with a primary listing on the Australian Stock Exchange and secondary listing in London.

The company has had a dramatic turnaround in fortunes in the past two-and-a-half years under British chief executive David Turner. He announced last November his plan to sell Cleanaway UK and Cleanaway Australia, having sold the German business to waste management group Sulo of Germany for GBP370 million.