LONDON (Reuters) - Buyout groups Blackstone and EQT have advanced to the second round of bids in the sale process of waste management company Urbaser, according to two sources with knowledge of the situation.

Urbaser´s owner, private equity firm Platinum, engaged Citi and Santander as advisors for the sale earlier this year, the sources said. A deal could value the waste management firm at around 5 billion euros, one of the people and a third one said.

The private equity firm has told bidders to start due diligence and prepare binding offers for the last week of February, one of the sources said.

KKR and Macquarie, which submitted a preliminary offers, are no longer in the race, said another of the people. All three sources asked not to be identified as the matter is private. There is no certainty that any firm offers will be made.

Spokespeople for Blackstone, EQT, KKR, Macquarie, Citi and Santander declined to comment. Platinum and Urbaser didn't reply to a request for comments.

The sale if successful would mark one of the largest private equity deals in Europe in recent months.

Waste management is the most attractive sector for infrastructure investors within utilities in 2024, according to a survey by consultancy firm Roland Berger.

Urbaser is present in approximately 15 countries around the world, including the U.S., India, Spain and France. It sold its UK business to Spanish company FCC Servicios Medio Ambiente earlier this year.

In 2023, Urbaser turnover exceeded 2.5 billion euros, according to its latest sustainability report.