The ACCC has outlined its preliminary competition concerns with Yamaha Motor Australia Pty Ltd's proposed acquisition of Telwater Pty Ltd in a Statement of Issues published today.
Telwater is the largest manufacturer and supplier of aluminium trailer boats in Australia and has strong brand recognition throughout the recreational marine industry. Market participants have told the ACCC that a Telwater aluminium trailer boat is a very important product for many dealers.
Yamaha is a leading supplier of outboard motors. It faces competition from outboard motor brands such as Mercury and Suzuki.
The ACCC's preliminary view is that the proposed acquisition is likely to have the effect of substantially lessening competition in the wholesale supply of outboard motors in Australia.
"We are concerned that, following the acquisition, Yamaha would have the ability and incentive to link the wholesale supply of Yamaha outboard motors to Telwater aluminium trailer boats, for example, by requiring dealers of Telwater boats to also become Yamaha outboard motor dealers," ACCC Commissioner Dr Philip Williams said.
"This acquisition could make it much harder for other outboard motor suppliers to compete effectively with Yamaha, ultimately reducing the choice and competitive offerings available to consumers."
The ACCC is also concerned that the merged entity could seek to reduce the access to dealers and customers by rival suppliers of trailer boats.
"Linking the wholesale supply of Yamaha outboard motors with Telwater aluminium trailer boats could limit how effectively existing and future rival wholesale suppliers of aluminium boats and outboard motors can compete post-merger," Dr Williams said.
"This could ultimately lead to higher prices and reduced choice or quality for consumers seeking to purchase a new aluminium trailer boat or outboard motor."
The ACCC invites submissions from interested parties in response to the Statement of Issues by 23 October 2025.
More information, including the Statement of Issues, can be found on the ACCC's website at Yamaha Motor Australia Pty Ltd - Telwater Pty Ltd.
Note
'Outboard motors' are standalone systems that are installed to the outside hull of the boat, as opposed to inboard motors which are installed inside the boat's hull and used for larger boats.
Trailer boats are small marine vessels that can be fitted to a trailer for easy transportation and generally range between 2 - 9 metres in length. Trailer boats can be made from various materials, with the most common being aluminium or fibreglass.
Aluminium boats are primarily used for recreational boating in Australia. Aluminium boats are generally lighter, more durable and generally less expensive than fibreglass boats.
Aluminium boats and outboard motors are complementary products, often purchased by consumers together. The complementary nature of these products is highly relevant to the ACCC's competition assessment.
More information on how the ACCC considers conglomerate effects can be found in section 4 of the ACCC's Merger Assessment Guidelines.
Background
Yamaha is proposing to acquire 100 per cent of the shares of Telwater from Bombardier Recreation Products Inc (BRP), alongside a property in Coomera, Queensland used to manufacture, fit and warehouse aluminium trailer boats.
Trailer boats are generally used for leisure activities, such as fishing and cruising. Recreational trailer boats typically use an outboard motor.
Yamaha Motor Company Ltd (YMC) manufactures outboard motors in Asia, primarily in Japan, and imports them into Australia by its wholly owned subsidiary, Yamaha Motor Australia Pty Ltd (Yamaha). Yamaha supplies the outboard motors to dealers (retailers) Australia wide. Dealers then supply the outboard motors to end-customers.
Yamaha does not manufacture boats in Australia. YMC subsidiaries manufacture trailer boats overseas for various international markets. Yamaha and a related business have supplied a small number of these trailer boats to dealers in Australia, primarily via a third party Australian distributor. Yamaha also owns the trademarks for a small number of aluminium trailer boat and trailer brands, which were previously licensed to a third party manufacturer and are not currently in use. Yamaha does not supply trailers for boats in Australia.
Telwater manufactures aluminium trailer boats and trailers in Australia and supplies them to dealers, who then sell to end customers. Telwater currently supplies three lines of trailer boats: Quintrex, Stacer and Yellowfin branded boats.
Telwater supplies custom-fitted trailers that are sold together with its boats (branded under Telwater), or loose trailers (under the brand name "Move") that can be used for any trailer boat. Telwater also supplies a limited number of outboard motors to dealers as part of a package with a Telwater boat and also potentially a trailer. Telwater is a non-exclusive distributor of Mercury outboard motors, with Mercury also supplying its outboard motors to dealers itself and via other wholesalers. Telwater also supplies a very small number of Rotax outboard motors (which are manufactured and distributed by BRP), as part of a package with some of its boats.
