Cleanaway 'confident' ACCC will approve Citywide Waste deal
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More news: Cleanaway shares gained on the ASX as the waste management group said it "remains confident" that its proposed acquisition of Citywide Waste will be approved.
Earlier, the competition regulator published preliminary concerns with the deal.
Cleanaway shares were up 5.2% to $2.85 by 12:20pm AEDT.
Cleanaway said that it has been working closely with the Australian Competition and Consumer Commission (ACCC) in relation to its review of the acquisition. The company noted that it is currently reviewing the matters raised by the regulator in its statement of issues, and will look to address its concerns "in due course".
Cleanaway said it expects to complete the acquisition before the end of FY25.
ACCC outlines competition concerns with Cleanaway acquisition
The news: The competition regulator has outlined preliminary competition concerns with Cleanaway Waste Management's proposed acquisition of Citywide Service Solutions' waste and recycling business.
The context: The Australian Competition and Consumer Commission (ACCC) said it is concerned that the acquisition will extend Cleanaway's "already strong" position in Melbourne by expanding its network of waste disposal facilities.
The move may enable ASX-listed Cleanaway, one of the largest waste management companies in Australia, to charge downstream collection providers higher prices and reduce service quality, the regulator noted.
In Melbourne, Cleanaway provides collection and disposal services for commercial and industrial customers and municipal councils, and operates the Melbourne Regional Landfill, one of the largest landfills in the city.
Citywide Waste, currently owned by City of Melbourne Council, offers collections services for municipal councils and commercial and industrial customers, and operates the Dynan Road transfer station, one of the city's key disposal facilities.
The ACCC has invited submissions in response to its statement of issues by 28 November.
What they 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," ACCC Commissioner Philip Williams said.
"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 source: ACCC media release
