Waste management firm Biffa has agreed to a £1.3 billion takeover deal by a US investor.

The London-listed waste firm said Bears Bidco, a new company run by Energy Capital Partners (ECP), will pay 410p per share for the company.

It comes three months after Biffa told shareholders it was likely to accept a £1.4 billion bid from ECP.

On Tuesday, Biffa chairman Ken Lever said: “Whilst being lower than the proposal previously announced on June 7, it is the Biffa board’s view that this offer represents a compelling opportunity, particularly in a weakening economic environment, for shareholders to realise, in cash and with certainty, the potential for future value creation.”

Biffa said the agreed deal represents a 28% premium on its closing price from June 6, before the offer was announced.

The move, which will be voted on by shareholders, is expected to complete during the fourth quarter of 2022 or first quarter of next year.

Mr Lever added: “ECP is an experienced investor in environmental infrastructure and sustainability assets and offers a supportive environment to accelerate the group’s further development and growth as a leading enabler of the circular economy.”

Andrew Gilbert, partner at ECP, said: “ECP is excited to begin this long-term partnership with Biffa and its extremely talented employees and leadership.

“We intend for Biffa to remain focused on providing the high level of service to which its customers have become accustomed and look forward to supporting Biffa’s strategic initiatives, development, growth and industry leadership.”

In June, when it first confirmed the potential bid, Biffa also revealed it was under investigation by HM Revenue and Customs, a probe which could ultimately cost as much as £153 million.

Shares in Biffa surged by 28.3% to 407.8p on Tuesday morning.