NEW YORK (TheStreet) -- Waste Connections (WCN - Get Report) stock is up by 5.49% to $53.80 on heavy trading volume on Tuesday, after the waste services company announced that it has agreed to a merger with Progressive Waste (BIN).

Waste Connections stockholders will receive about 2.07 shares of Progressive Waste stock for each share of Waste Connections stock they own. After the merger completes, Waste Connections stockholders will own about 70% of the combined company.

The deal, which is valued at $2.7 billion, is expected to close in the second quarter of 2016, according to the Wall Street Journal

"We believe this combination creates a company uniquely positioned with industry-leading operating and free cash flow margins, together with the balance sheet strength, to drive further growth and increase the return of capital to our shareholders," Waste Connections CEO Ronald Mittelstaedt said in a statement on Tuesday. 

Progressive Waste stock is up 7.57% to $25.29 in mid-morning trading on Tuesday.

So far today, 2 million shares of Waste Connections have traded, versus its 30-day average of about 896,000 shares.

Separately, recently, TheStreet Ratings rated this stock as a "buy" with a ratings score of B-. The company's strengths can be seen in multiple areas, such as its revenue growth, which has slightly outpaced the industry average of 5.4%. WASTE CONNECTIONS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: WCN

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