The Australian Competition and Consumer Commission (ACCC) has given its nod of approval around Cleanaway’s (ASX:CWY)
$501 million proposal to buy parts of Suez locally-based waste assets.
Cleanaway will buy two landfill sites and five transfer stations in Sydney from Suez, a rival that also provides waste management services across the nation.
The move follows the delay from the ACCC after delaying its decision after Cleanway’s cooperation with the competition watchdog for six months. The hold back blamed due to the ongoing consideration of Veolia's proposed acquisition of the balance of Suez's Australian business, including the proposed divestment package from Veolia.
Veolia has offered an undertaking to divest Suez's Seven Hills transfer station in Sydney, as well as other assets in Western Australia and South Australia, and a package of national commercial and industrial customer contracts and the proposed acquisition by Cleanaway needs to be considered in that context.
ACCC commissioner Stephen Ridgeway said “we concluded that while the transaction would likely make Cleanaway a stronger competitor, it is unlikely to lead to a substantial lessening of competition”.
Shares in Cleanaway Waste Management (ASX:CWY)
is trading 0.2 per cent lower at $2.93.