GFL Environmental Inc. is reportedly in preliminary discussions with two private equity firms regarding a potential privatization, according to a person familiar with the matter. The conversations come amid a broader market downturn in the waste management sector, which some investors may view as an opportunity to acquire assets at a reduced valuation.

Sources indicate that one of the bidders has submitted a more formal proposal, while the other remains in earlier stages of negotiation. However, there is no certainty that an agreement will be finalized, as talks are ongoing and may not result in a transaction.

Over the past year, GFL’s stock has declined by approximately 18 percent. This performance contrasts with the company’s three main North American competitors—Waste Management Inc., Waste Connections Inc., and Republic Services Inc.—which have experienced share price changes ranging from flat to down around 10 percent during the same period. Meanwhile, the broader S&P 500 index has increased by roughly 19 percent, reflecting a divergence between the waste management sector and the overall market.

The potential privatization interest follows GFL’s recent announcement in April that it would acquire Calgary-based Secure Waste Infrastructure Corp. for $5.4 billion. The deal was structured primarily through an equity exchange, with Secure shareholders set to receive 80 percent of the consideration in GFL shares and 20 percent in cash. Following this transaction news, GFL’s shares rose 7.6 percent in a single day, lifting its market capitalization to about $21 billion.

Founded in 2007 and headquartered in Vaughan, Ontario, GFL has a notable history of involvement with private equity backers, which may influence its strategic options as it evaluates shareholder interest and market conditions.

At this stage, no official statements have been made by GFL or the potential buyers, leaving the company’s future ownership structure uncertain.