ACCC has flagged competition concerns over recycler Cleanaway’s bid to buy Citywide Waste.

The Australian Competition and Consumer Commission (ACCC) has warned that Cleanaway Waste Management Limited’s proposed purchase of Citywide Waste could harm competition in Melbourne’s waste sector. 

The watchdog, in a newly released Statement of Issues, is seeking public input on the matter.

Cleanaway, one of Australia’s largest waste firms, operates nationwide with a vertically integrated business model covering collection, transfer, and disposal. 

Its Melbourne operations include major transfer stations and the Melbourne Regional Landfill in Ravenhall, one of the city’s largest.

Citywide Waste, owned by the Melbourne City Council, provides waste collection services to councils and businesses. 

Its Dynon Road transfer station near the CBD handles high volumes of putrescible waste and is a key disposal facility.

ACCC Commissioner Dr Philip Williams has voiced concerns that the deal could strengthen Cleanaway’s market position. 

“We are concerned that the acquisition will extend Cleanaway’s already strong position in Melbourne by expanding Cleanaway’s existing network of waste disposal facilities,” he said.

The regulator believes the acquisition could reduce competition, especially in Melbourne’s central and western regions. 

“Our preliminary view is that the proposed acquisition would remove the close competitive tension between Cleanaway’s and Citywide Waste’s waste disposal facilities,” Dr Williams added. 

The ACCC fears this may increase costs for rival waste collectors and lower service standards.

“Rival waste collectors, particularly commercial and industrial collectors, require access to waste disposal facilities at competitive rates and competitive service levels,” Dr Williams said.

The ACCC is inviting public submissions on the deal until November 28.

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