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Waste Management (WM - Get Report) is close to buying its smaller rival Advanced Disposal Services (ADSW - Get Report) for $2.9 billion, the Journal reported, citing people familiar with the matter.

Waste Management would pay $33.15 a share in cash for Advanced Disposal, the people told the Journal, representing a 22.1% premium to Advanced Disposal's closing price Friday of $27.14. Including debt, the deal would be worth nearly $5 billion.

Advanced Disposal shares were inactive in premarket trading on Monday.

The transaction - which would merge the No. 1 and No. 4 companies in the sector - would rank as one of the biggest solid-waste company acquisitions in more than a decade. It also would be Waste Management's biggest acquisition in its history, according to the Journal.

The deal could be announced Monday.

Advanced Disposal serves about 2.8 million residential customers and 200,000 commercial customers in around 16 states and the Bahamas. The company went public in 2016 and is part-owned by the Canada Pension Plan Investment Board, which, according to one of the people, has agreed to vote for the deal, according to the Journal.