The ACCC has published a Statement of Issues outlining its preliminary competition concerns with Cleanaway Waste Management Limited's (ASX:CWY) proposed acquisition of the waste and recycling business of Citywide Service Solutions Pty Ltd.
The ACCC has published a Statement of Issues outlining its preliminary competition concerns with Cleanaway Waste Management Limited's (ASX:CWY) proposed acquisition of the waste and recycling business of Citywide Service Solutions Pty Ltd.
Cleanaway is one of the largest waste management companies in Australia. Cleanaway is vertically integrated through the waste supply chain, from disposals to collections, with operations in all states and territories in Australia.
In Melbourne, Cleanaway provides collection and disposal services for commercial and industrial customers and municipal councils. Cleanaway operates one of the largest landfills in Melbourne, the Melbourne Regional Landfill located in Ravenhall and a network of transfer stations.
Citywide Waste, currently owned by City of Melbourne Council, offers collections services for municipal councils and commercial and industrial customers. Citywide Waste also operates the Dynon Road transfer station, which accepts large volumes of putrescible waste and is close to the Melbourne CBD, making it a key disposal facility.
"We are concerned that the acquisition will extend Cleanaway's already strong position in Melbourne by expanding Cleanaway's existing network of waste disposal facilities" ACCC Commissioner Dr Philip Williams said.
"Our preliminary view is that the proposed acquisition would remove the close competitive tension between Cleanaway's and Citywide Waste's waste disposal facilities, particularly in the central and west regions of metropolitan Melbourne,"
"Rival waste collectors, particularly commercial and industrial collectors, require access to waste disposal facilities at competitive rates, and competitive service levels, to compete effectively for customers."
The ACCC invites submissions in response to the Statement of Issues by 28 November 2024.
More information including the Statement of Issues can be found on the ACCC's website at Cleanaway Waste Management Limited - Citywide Waste.
Note
Putrescible waste is solid waste that contains organic material capable of being decomposed by microorganisms.
Transfer stations act as consolidation points where waste is dropped off by collections companies and bundled for bulk transport by trucks to final disposal sites. These sites can be landfills where waste may ultimately be buried.
Background
Cleanaway is a public company listed on the ASX. It is one of the largest waste management companies in Australia. Cleanaway provides recycling, waste management and industrial services in Australia.
Cleanaway is vertically integrated across waste collections, processing and disposal services. In Melbourne, Cleanaway owns and/or operates a network of putrescible transfer stations at Brooklyn, Lysterfield and the South East Melbourne Transfer Station, in addition to the Melbourne Regional Landfill.
Citywide Waste is 100% owned by Melbourne City Council and provides waste management services to municipal councils and commercial and industrial customers in Melbourne. It has operated the Dynon Road transfer station since 1995.
