Oct. 13 (Bloomberg) -- Brambles Industries Ltd., the world's biggest supplier of pallets used to move and store goods, will announce a ``significant transaction'' today, amid speculation it is set to sell its European waste collection unit.

The Sydney-based company had its stock halted from trade on the Australian Stock Exchange today, pending the announcement. Michael Sharp, a company spokesman, declined to comment further.

Macquarie Equities Ltd. last month said Brambles may sell the Cleanaway Europe waste management business for as much as A$1.36 billion ($1 billion).

Selling Cleanaway ``could be a significant positive catalyst depending on the price achieved,'' said Paul Huxford, a Sydney- based analyst at Macquarie, wrote in a note to clients Sept. 20. He has an ``outperform'' rating on the stock.

Chief Executive David Turner may be seeking to offload parts of the business that don't match the earnings growth delivered by CHEP, the pallets division which is the company's most profitable unit, Huxford said.

CHEP's revival has helped Turner report four straight halves of net income growth since he was promoted to the top job in October 2003.

Cleanaway's global second-half sales rose 3.6 percent in the six months ended June 30. CHEP's second-half sales rose 5.3 percent to A$1.8 billion.

Cleanaway Europe will account for about 10 percent of the company's earnings before interest, tax and amortization in fiscal 2006, according to Macquarie. CHEP makes up about two- thirds of Brambles' earnings.

Brambles shares rose 6 cents yesterday to close at A$8.63. They've gained 24 percent this year.

To contact the reporter of this story: Vesna Poljak in Sydney vpoljak@bloomberg.net

Last Updated: October 12, 2005 20:34 EDT