Bingo Industries has offered to divest its eastern Sydney waste processing plant in Banksmeadow to address antitrust concerns related to the waste management firm’s proposed $578 million acquisition of Dial-a-Dump.
Bingo announced the acquisition of its smaller rival in August last year in a bid to take advantage of a Chinese ban on waste imports. The deal could make the company the biggest waste collector in Sydney.
Under the proposed acquisition, Bingo would take over Dial-a-Dump’s assets, including its waste transfer station in Alexandria, its Eastern Creek waste facility and landfill site – the biggest in the southern hemisphere, and its collections fleet of 55 vehicles.
Bingo recently told investors that it made the divestiture offer in response to the Australian Competition and Consumer Commission (ACCC) concerns that its acquisition of Dial-a-Dump would have negative impacts on the market for processing, landfill and collections of building and demolition waste.
“We remain firmly of the view that the acquisition would not substantially lessen competition in any relevant market, including landfill and building and demolition processing,” Daniel Tartak, Bingo managing director, told the Sydney Morning Herald.
“We have, however, offered to divest our facility in Banksmeadow to address the ACCC’s specific concern regarding building and demolition processing in inner Sydney and the eastern suburbs if it leads to the ACCC providing final clearance for the Dial-a-Dump Industries acquisition to proceed.
“We believe that this acquisition is inherently pro-competitive as it enables us to more readily compete against the larger national and international players in the industry.”
The ACCC said it would consider whether the company’s proposal to divest its Banksmeadow plant adequately addressed its competition concerns.
According to the regulator, a consultation process, launched this week, will seek the views of other market participants.
“The ACCC’s decision to consult on this undertaking by Bingo should not be interpreted as an indication that we will accept the undertaking, or that we will ultimately clear the transaction,” Roger Featherston, acting chair of the ACCC, told the Sydney Morning Herald.
“Consultation is just one step of the merger review process. The ACCC will continue to consider the proposed acquisition and its potential impact on customers and the market.”