Waste management company, Cleanaway, is clear to complete its next acquisition.
Cleanaway, which is vertically integrated through the waste supply chain and operates Australia-wide, aims to acquire the waste and recycling business of Citywide Service Solutions (Citywide Waste).
Citywide Waste is currently owned by the City of Melbourne Council and offers collections services for municipal councils and commercial and industrial customers. It also operates the Dynon Road transfer station which accepts large volumes of putrescible waste and is close to the Melbourne CBD.
Meanwhile, Cleanaway provides collection and disposal services for commercial and industrial customers and municipal councils in Melbourne. It also operates one of the largest landfills in Melbourne, the Melbourne Regional Landfill in Ravenhall, and a network of transfer stations.
An investigation by Australia’s competition watchdog focused on the proposed acquisition’s impact on competition in the supply of putrescible waste disposal services in Melbourne for commercial and industrial waste.
Dr Philip Williams, the Commissioner of the Australian Competition & Consumer Commission (ACCC), said the investigation looked at the central and west regions of Melbourne in particular and two conclusions were reached.
“First, those customers with larger waste collection trucks are able to optimise their waste collection routes to divert volumes to landfills and transfer stations other than the Melbourne Regional Landfill and Dynon Road transfer station,” he said.
“This means that should Cleanaway own both facilities, larger collections customers would still be able to take waste volumes to other competitors if needed.
“Second, we found that while some customers preferred the Dynon Road transfer station due to its closeness to the Melbourne CBD and ease of access for smaller waste collection trucks, these customers don’t see Melbourne Regional Landfill as a viable alternative now.
“We therefore found that the acquisition is unlikely to have an impact on those customers.”
Rival landfills and transfer stations in Melbourne, according to the ACCC, are expected to continue to compete for waste volumes with Cleanaway post-acquisition.
The acquisition is expected to be completed around the end of FY25.
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