The ACCC has outlined its preliminary competition concerns with Igneo Infrastructure Partners' proposed acquisition of Benedict Recycling Pty Ltd in a Statement of Issues today.
Igneo manages the infrastructure fund which owns Integrated Waste Services (IWS), which operates under the Recycle Central brand in the Newcastle region of NSW, supplying mixed building and demolition (B&D) waste processing services. Benedict Recycling also provides these services in the Newcastle region.
The ACCC has preliminary concerns that the proposed acquisition is likely to substantially lessen competition in the supply of mixed B&D processing services in the Newcastle region.
"We are concerned the proposed acquisition would lead to higher prices or reduced service quality for mixed B&D waste processing in the Newcastle region," ACCC Commissioner Dr Philip Williams said.
"IWS and Benedict Recycling are the largest waste processors in the region for mixed B&D waste, and there are limited alternative waste processors for customers to choose from," Dr Williams said. "IWS and Benedict Recycling are also each other's closest competitors."
The ACCC is continuing to investigate the extent to which landfills are competitive alternatives for customers using the mixed B&D processing services offered by IWS and Benedict Recycling.
"Many waste collectors in the Newcastle region have a strong preference to deposit mixed B&D waste at processors over landfill, reflecting reportedly higher costs of landfill disposal as well as other factors, including customer preferences for the recoverable material to be diverted from landfill, where possible, due to environmental considerations."
As IWS operates a B&D collections business in the Newcastle region, the ACCC is also considering the ability and incentive of IWS to disadvantage rival B&D collection companies after the acquisition - for example, by increasing the prices it charges its collection rivals for mixed B&D waste processing.
The ACCC invites submissions from interested parties in response to the Statement of Issues by 25 September 2025.
More information, including the Statement of Issues, can be found on the ACCC's website at Igneo Infrastructure Partners - Benedict Recycling Pty Ltd.
Note
B&D waste is material generated from the demolition, construction or renovation of residential and commercial buildings, civil projects or infrastructure development. B&D waste is non-putrescible (or 'solid'), meaning it contains primarily non-organic materials that may or may not be recyclable.
Mixed B&D waste is a subcategory of B&D waste which involves materials that have not been segregated. Mixed B&D waste may involve materials such as bricks, concrete, timber, glass, plastic, plasterboard, ceramics, metal, paper and cardboard.
Background
Igneo proposes to acquire 100 per cent of the shares of Benedict Recycling (the Proposed Acquisition).
Igneo is an unlisted infrastructure asset management business of the First Sentier Investors Group, an Australian asset manager with more than A$222 billion in funds under management (as at 30 June 2024). First Sentier Investors Group is ultimately owned by Mitsubishi UFJ Financial Group.
Igneo manages an infrastructure fund that owns IWS, a waste management business, with operations in Western Australia, South Australia, and the Newcastle/Hunter Valley region. IWS provides a range of waste management services including resource recovery, commercial composting, and disposal.
IWS owns Recycle Central Group (Recycle Central), a waste management business that provides waste collection, disposal and processing services for B&D and commercial and industrial (C&I) waste. Recycle Central operates two facilities in Greater Newcastle:
- a large-scale waste processing facility, located in Kurri Kurri, 38 km from the Newcastle CBD; and
- a waste transfer station located in Cardiff (in central Newcastle).
IWS offers collection services under several brands including 'Central Skips', through Recycle Central, and 'Rent a skip'.
Benedict Recycling provides waste disposal and processing services for B&D, C&I, household and green waste across Greater Sydney (Chipping Norton, Unanderra, Smeaton Grange and Belrose), Bowral and Newcastle.
In Newcastle, Benedict Recycling operates a processing facility in Mayfield West, close to the centre of Newcastle (the Newcastle Recycling Centre).
Benedict Recycling does not operate a collections business.
