The Bull

Monday 18

February, 2019 5:03 AM

ACCC rubbishes Bingo's proposed expansion

ACCC rubbishes Bingo's proposed expansion

The Australian Competition & Consumer Commission is investigating Bingo's proposed acquisition of fellow wast management company Dial-a-Dump.

Share |

By AAP 29.11.2018 12:00 PM

Waste management company Bingo's share price plummeted after the competition watchdog raised concerns about its proposed $577.5 million acquisition of Dial-a-Dump, saying the ASX-listed company would squash market share.

The deal would make Bingo the largest building and demolition waste collection company in Sydney and diminish competition for processing, landfill and collections, according to the Australian Competition and Consumer Commission.

Other facilities charge significantly more for heavy loads or are too far away to put price-pressure on Bingo, watchdog chair Rod Sims said in a statement on Thursday.

"The acquisition would remove future competition between Bingo's and Dial-a-Dump's dry landfills, which may lead to higher gate fees than would be likely without the acquisition," he said.

"Competition between Sydney landfills is likely to become more important after the introduction of the Queensland landfill levy, which will make transporting waste to Queensland more expensive."

The industry relies heavily on the three levels of the supply chain - collection, processing and landfill - and affordable access to processing facilities is needed to compete for customers, ACCC says.

The watchdog is investigating the vertical integration issues and invites submissions by December 13 before a decision expected on February 21.

Bingo's shares were down 14 cents, or 6.2 per cent, to $2.13 at 1150 AEDT.

  • Trump to get update on China trade talks

    US duties on $US200 billion worth of Chinese imports are set to rise to 25 per cent from 10 per cent if no deal is reached by March 1 to address US demands

  • SA govt unveils Repat Hospital plan

    The South Australian government has unveiled its master plan to redevelop Adelaide's Repatriation Hospital.

  • US-China talks to boost Aussie market

    Australia's share market is tipped to open higher on Monday after optimism surrounding US and China trade talks.

  • The Week Ahead

    In Australia, the December quarter Wage Price Index release dominates the local agenda in the coming week.

  • ASX closes flat as more companies report

    The Australian sharemarket has managed to finish in positive territory as more companies reported earnings results.

  • Stocks to watch

    Stocks of interest at the close of trade on the ASX on Thursday, February 14.

  • Germany to let NATO use its cyber skills

    Germany is to join the ranks of NATO countries making its cyber warfare skills available to the alliance to help fight hacking and electronic warfare, officials said on Thursday.

  • Domain posts $156.4m loss as listings fall

    Domain's first-half loss has widened to $156.4 million after Sydney and Melbourne's stumbling property markets forced it to take a large non-cash impairment.

  • Farmer denies scaring vegans with gunshot

    A WA farmer who asked vegans to stop filming calves on his property and leave, then fired a shot into farmland, says he wasn't trying to scare them.

  • CommSec Daily Report Friday

    The local sharemarket is mostly flat so far in a choppy session of trade. The ASX 200 is marginally higher by 6 points or 0.1% to 6066 points towards lunch after trading in a narrow 18 point band...

Index: Points Change Percent


© Copyright All rights reserved.