The Australian Competition and Consumer Commission (ACCC) has announced that it will not oppose Cleanaway Waste Management Limited's proposed acquisition of Contract Resources Group Pty Ltd. This decision comes after a thorough review of the potential impact on competition within the industrial services sector in Australia.

Both Cleanaway and Contract Resources provide a variety of industrial services, including maintenance and cleaning for industrial facilities. Cleanaway is recognized as one of the largest waste management companies in Australia, while Contract Resources specializes in niche industrial services, such as catalyst handling, which Cleanaway does not offer.

The ACCC's review focused on the competitive landscape for industrial services, particularly in the oil and gas sector where both companies primarily compete. The commission found that the merged entity would still face significant competition from other suppliers, and large customers in this sector have the capacity to support new entrants into the market.

Furthermore, the ACCC assessed whether the acquisition would allow the merged company to leverage Contract Resources' expertise in specialist services to dominate the waste management market. However, the commission concluded that this strategy would not be profitable, as customers have alternative options for sourcing these services.

Overall, the ACCC determined that the acquisition is unlikely to substantially lessen competition in either the industrial services or waste management markets, allowing Cleanaway to proceed with the acquisition.