(Bloomberg) -- Australian industrial conglomerate Seven Group Holdings Ltd. is exploring an acquisition of Cleanaway Waste Management Ltd., one of the country’s biggest waste disposal firms, people familiar with the matter said. 

Seven Group, which is working with an adviser, has been seeking financing for a potential takeover of Melbourne-based Cleanaway Waste, said the people, who asked to not be identified because the details are private. No final decision has been made and Seven Group could opt against pursuing a deal, the people said. 

A spokesperson for Seven Group said in an emailed statement that the company isn’t looking to acquire Cleanaway Waste, adding that it is focused on completing its purchase of Boral Ltd. and its other business units.

Cleanaway Waste said in a statement that it isn’t in any discussions with Seven Group “in relation to any form of corporate transaction or otherwise, nor has it received an approach or offer from SGH.”

Cleanaway Waste surged 16% following Tuesday’s Bloomberg News report, the biggest gain since April 2021, lifting the company’s market value to A$6.7 billion ($4.3 billion). Seven Group was up 2%. 

A potential deal would be a banner transaction for Seven Group and one of the largest takeovers this year in Australia, which has experienced an uptick in mergers and acquisitions activity, according to data compiled by Bloomberg. 

Seven Group has built its varied portfolio through the years via acquisitions, with holdings ranging from energy production to media. It’s in the process of buying the shares in building material company Boral that it doesn’t already own. Boral’s Chief Executive Officer Vik Bansal was CEO of Cleanaway Waste from 2015 to 2021. 

Read More: Boral Names Former Cleanaway Head Bansal as Next Chief Executive

Cleanaway Waste describes itself as “Australia’s leading total waste management solutions provider.” Its solid-waste business offers removal and recycling services to more than 90 councils and over 140,000 customers. 

--With assistance from Gillian Tan, Manuel Baigorri, Harry Brumpton, Zoe Ma and Michael Hytha.

(Updates with Cleanaway Waste’s statement in fourth paragraph.)

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