The ACCC is considering whether a proposal by waste company Bingo Industries Limited (Bingo) (ASX: BIN) to divest its eastern Sydney waste processing plant will adequately address the ACCC’s competition concerns about Bingo’s planned acquisition of Dial-a-Dump.
A consultation process, launched today, will seek the views of market participants on whether Bingo’s proposed divestment is likely to address potential competition issues identified by the ACCC.
In November, the ACCC raised preliminary competition concerns about Bingo’s proposed acquisition of Dial-a-Dump, relating to the supply of building and demolition (B&D) waste processing services in Sydney, and the loss of competition between Sydney’s non-putrescible (dry) landfills.
Bingo has offered to divest its Banksmeadow processing facility in eastern Sydney to an acquirer approved by the ACCC.
The divestment would either take the form of a long-term lease of the land on which the facility is located, or the outright sale of the land.
“The ACCC’s decision to consult on this undertaking by Bingo should not be interpreted as an indication that we will accept the undertaking, or that we will ultimately clear the transaction,” ACCC Acting Chair Roger Featherston said.
“Consultation is just one step of the merger review process. The ACCC will continue to consider the proposed acquisition and its potential impact on customers and the market.”
Bingo’s proposed undertaking does not include any obligations in relation to its landfill sites. The ACCC is continuing its investigation in relation to this market.
The ACCC is seeking the views of market participants on the proposed divestment. This includes views on whether the acquisition of a lease over the land would affect the ability and incentives of the lessee to be an effective competitor in the future.
Parties wishing to make submissions should do so by 30 January 2019.
The proposed date for the announcement of the ACCC’s final decision is 21 February 2019.