Waste management company Bingo Industries has offered to divest its waste processing facility in Banksmeadow, in order to address an ACCC preliminary concern in relation to the company’s proposed acquisition of Dial-A-Dump Industries.
Earlier this month the ACCC launched a consultation process to seek the views of market participants on whether Bingo’s proposed divestment is likely to address potential competition issues identified by the ACCC.
In November 2018, the ACCC raised preliminary competition concerns about Bingo’s proposed acquisition of Dial-a-Dump for $577.5 million, relating to the supply of building and demolition (B&D) waste processing services in Sydney, and the loss of competition between Sydney’s non-putrescible (dry) landfills.
Bingo managing director and CEO Daniel Tartak said the company remains of the view the acquisition would not substantially lesson competition in any relevant market, including landfill and building and demolition processing.
“We have offered to divest our facility at Banksmeadow to address the ACCC’s specific concern regarding B&D processing in inner Sydney and the eastern suburbs if it leads to the ACCC providing final clearance for the DADI acquisition to proceed,” he said.
Dial-a-Dump is a fully integrated recycling and waste management business in NSW with operations across the waste value chain from collections to recycling, landfill and product sales.
“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 recycling ecology park will provide valuable recycling and waste infrastructure for the ongoing growth of the greater Sydney region,” Tartak said.
If Bingo’s proposed undertaking is accepted by the ACCC and the regulator has no ongoing concerns regarding the acquisition, the Banksmeadow facility would be divested pursuant to the agreed undertaking. The divestment would include all assets necessary to run the facility as well as the transfer of site personnel.
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