WASTE MANAGEMENT group Greenstar is in advanced negotiations to buy either all or part of its rival, Co Meath-based company Panda Waste.

Greenstar, which is owned by NTR, the energy and utilities group, is conducting due diligence on Panda.

A deal would cement Greenstar's position as Ireland's biggest waste management group.

It is estimated that Panda could fetch about €65 million if a deal is concluded to sell the whole business to Greenstar.

A spokesman for Panda said: "We are exploring all options. However, it would be premature to say that a sale is imminent."

A spokeswoman for Greenstar declined to comment.

Greenstar has been highly acquisitive in recent times, buying 13 companies in eight years.

The company spent €15.5 million buying Bailey Waste Recycling and Waterford-based Rainbow Refuse last year and has announced plans to enter the waste market in Northern Ireland.

Greenstar has annual turnover of about €160 million.

Panda was established in 1973 and purchased in 1990 by Eamon Waters, its current managing director.

The company has grown from being a small local operator to a firm with a turnover of more than €50 million. It employs more than 250 staff and operates in Louth, Dublin and Meath.

The company has more than 40,000 domestic customers, who are offered a black and a green bin collection service, and more than 1,000 commercial customers.

The firm services retailer Dunnes Stores throughout the island.

Dublin City Council failed to obtain a High Court injunction against Panda last month to prevent the firm from expanding into the council's administrative area.

The council had sought the injunction to apply until the outcome of a legal action by Panda challenging the council's proposed new waste collection regime.