Germany's new Packaging Ordinance, intended to stabilise the country's private-sector packaging waste management schemes, has yet to be adopted. Yet there are already signs that profound changes are on the cards for German extended producer responsibility system for packaging waste.
Duales System Deutschland Holding (DSD), Germany's original “green dot” company and the industry leader with a market share of around 40 per cent, is to be sold within the next few months. The company's largest shareholder has reportedly been looking for some time for an opportunity to divest its stake in the company and is said to have already initiated the sales process. The financial investors HIG Capital and Bluebay have a majority holding in DSD. The company’s management team lead by CEO Michael Wiener holds 20 per cent.
In Tuesday's Frankfurter Allgemeine Zeitung, Mr Wiener was quoted as saying that the company was "around a third of the way there" on the sale. Completion of the deal should be possible by mid-year at the latest, he told the newspaper. Within the industry, there is still speculation on the potential buyer and the purchase price. According to information made available to EUWID, Germany's largest waste management company Remondis is thought to be a promising candidate.
The Rethmann group subsidiary pulled its own green dot company Eko-Punkt from the market two years ago in the face of market distortions brought on by the misrepresentation of packaging volumes. Remondis had tried to take over DSD on several occasions. However, there was growing evidence of a renewed attempt in the past few weeks. Remondis had already declared its interest in taking over the "Grüner Punkt", said sources familiar with the matter. Asked to comment, Remondis replied with characteristic reserve that it did not wish to comment on "market rumours".
Market insiders have only provided rough estimates of a purchase price for DSD, putting the sum between €100m and €250m*. It is not known whether financial investors, either from within Germany or from abroad, are also among the potential bidders. Nor can it be ruled out that Chinese investors, who have recently acquired several large European waste management companies and recyclers, will also throw their hat in the ring.
*edited to reflect additional information available after initial publication