British waste processing company Shanks has confirmed it is considering making a bid for Dutch peer Van Gansewinkel following media speculation.

Shanks said in a statement on Tuesday that it will soon be submitting ‘an updated, indicative non-binding proposal’ to Van Gansewinkel’s supervisory board.

Because Britain’s FCA has said the possible acquisition could be considered a reverse takeover, Shanks has requested a suspension of its shares.

The company said the combination of the two businesses would create a leading player, with complementary strengths across all market sectors.

Van Gansewinkel was owned by private equity firms CVC Capital Partners and KKR & Co until last year but ended that relationship as part of a debt restructuring agreement.

Van Gansewinkel has a workforce of 4,125 and booked turnover of €946m in 2015, making it slightly bigger than Shanks, the Financieele Dagblad said.