The Australian Competition and Consumer Commission (ACCC) has announced its decision to oppose Yamaha Motor Australia Pty Ltd’s proposed acquisition of Telwater Pty Ltd. This decision follows a thorough investigation that revealed the acquisition could substantially lessen competition in the wholesale supply of outboard motors in Australia.

The ACCC expressed concerns that the merger would likely lead to lower quality products, higher prices, and fewer choices for consumers in the outboard motor market. Telwater currently holds a dominant market share of approximately 60% to 70% in the manufacture and supply of aluminium trailer boats, while Yamaha is a leading supplier of outboard motors.

ACCC Commissioner Dr. Philip Williams stated that the merger could disadvantage rival outboard motor suppliers, as a combined Yamaha and Telwater could leverage Telwater’s strong market position in trailer boats to gain an unfair advantage in the outboard motors market. This could involve strategies such as bundling or tying, where dealers selling Telwater boats would be incentivized to also sell Yamaha outboard motors.

The investigation highlighted that such practices could lead to a significant loss of sales for competing outboard motor suppliers and increased distribution costs, ultimately harming competition in the market. The ACCC's assessment focused on the national market for wholesale outboard motors, with potential concerns also arising in specific local markets.

Yamaha's proposed acquisition involves acquiring 100% of Telwater's shares from Bombardier Recreation Products Inc (BRP) and a manufacturing property in Queensland. The ACCC had previously raised preliminary concerns about the acquisition in its Statement of Issues released in October 2025.