Shanks Group PLC (SKS.LN), a European independent waste management business, said Tuesday it has acquired the U.K. waste PFI interests of United Utilities Group PLC (UU.LN) for an undisclosed sum.

MAIN FACTS:

-Shanks will take UU's place on all of its existing bids including preferred bidder for a PPP municipal solid waste, or MSW, treatment contract for both Derbyshire County and Derby City Councils and short-list positions at Leicester, Derry and Gloucester.

-Other than a small initial payment any consideration will be contingent upon the successful financial closure of individual projects and payable from win fees.

-Shanks will also take on additional skilled technical and commercial resources from the UU bid team.

-UU bids will principally employ Mechanical Biological Treatment, or MBT, alongside gasification processes for thermal treatment of waste.

-Shanks shares closed Monday at 112.6 pence valuing the company at GBP446.79 million. United Utilities shares closed at 578 pence valuing the company at GBP3.94 billion.

-By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; ian.walker@dowjones.com