American private equity firms Carlyle Group LP and KKR & Co. LP have advanced in the sale of Transpacific Industries Group Ltd.'s waste management unit. Sources told Reuters that the deal could fetch around NZ$880 million ($725.5 million).

According to the report, the deal comes as Transpacific Industries is selling assets in New Zealand to focus on growing its Australian business as part of a broader corporate revamp. Transpacific Industries is a recycling, waste management and industrial services company based in Brisbane, Queensland.

Australian private equity firm Archer Capital is also among the bidders that have advanced in the auction, the report said.

The deal is the largest takeover in New Zealand since Chinese appliance maker Haier Group paid NZ$927 million last year for the 80% of Fisher and Paykel Appliances Ltd. it did not own, Reuters said. 

Carlyle, KKR and Archer are reportedly working with banks to put together debt packages to back their bids.