ACCC greenlights Cleanaway's $110m Citywide acquisition
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The news: Cleanaway Waste Management is set to acquire the waste and recycling arm of City of Melbourne Council-owned Citywide Service Solutions after the Australian Competition and Consumer Commission (ACCC) found the deal is unlikely to substantially lessen competition.
The numbers: Cleanaway announced its $110 million acquisition plans in June 2024, with the deal expected to be completed by the end of FY25. Shares in the waste management company were trading 1.11% lower at $2.68 at 11:27am.
The context: The national competition watchdog focused on the impact on competition for the supply of disposal services for putrescible waste — solid organic waste that can be decomposed by microorganisms — in Melbourne for commercial and industrial use.
Cleanaway operates one of Melbourne’s largest landfills, Melbourne Regional Landfill in Ravenhall, along with a network of transfer stations. After acquiring the Citywide business it will also own the Dynon Road transfer station near the Melbourne CBD.
The ACCC, which outlined preliminary concerns in November 2024, found that larger waste collection trucks could access competitor sites aside from Melbourne Regional Landfill and Dynon Road.
Meanwhile, customers who prefer Dynon Road due to its closeness and ease of access for smaller waste collection do not consider Melbourne Regional Landfill a viable alternative so are unlikely to be impacted by the acquisition.
