NEW YORK (TheStreet) -- Progressive Waste Solutions (BIN) stock is climbing by 8.49% to $36.69 on heavy trading volume on Tuesday after the company announced that it would combine with Waste Connections (WCN).

After announcing a review of strategic alternatives earlier this month, the Canadian waste management company will combine with Waste Connections in a deal valued at $2.7 billion. The companies expect the deal to close in the second quarter of 2016.

The headquarters will be based in Toronto, which will help the combined company avoid a higher U.S. tax rate, according to the Wall Street Journal. 

Waste Connections stockholders will own about 70% of the combined company and Progressive Waste shareholders will own about 30%, the companies said on Tuesday.

"We believe this combination will accelerate the improvements already underway, building upon our fourth quarter financial and operational performance," Progressive Waste CEO Joseph Quarin said in a statement. 

So far today, 1.19 million shares of Progressive Waste have traded, versus its 30-day average of about 431,000 shares.

Separately, recently, TheStreet Ratings rated this stock as a "hold" with a ratings score of C. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. The company's earnings per share declined by 41.7% in the most recent quarter compared to the same quarter a year ago.

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: BIN

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