The Australian Competition and Consumer Commission (ACCC) has announced that it will not oppose Cleanaway Waste Management Limited's proposed acquisition of Citywide Service Solutions Pty Ltd's waste and recycling business. Cleanaway is recognized as one of the largest waste management companies in Australia, operating across all states and territories.

In Melbourne, Cleanaway provides essential waste collection and disposal services for both commercial and industrial clients, as well as municipal councils. The company operates the Melbourne Regional Landfill in Ravenhall, one of the largest landfills in the area, along with a network of transfer stations.

Citywide Waste, currently owned by the City of Melbourne Council, also offers waste collection services to municipal councils and commercial customers. It operates the Dynon Road transfer station, which is strategically located near the Melbourne CBD and is a significant facility for handling large volumes of putrescible waste.

The ACCC's investigation primarily focused on the potential impact of the acquisition on competition in the supply of putrescible waste disposal services in Melbourne, particularly in the central and western regions. ACCC Commissioner Dr. Philip Williams highlighted concerns regarding the competition between the Melbourne Regional Landfill and the Dynon Road transfer station.

However, the ACCC reached two critical conclusions. Firstly, larger waste collection customers can optimize their routes to utilize other landfills and transfer stations, indicating that competition would remain even if Cleanaway owned both facilities. Secondly, while some customers prefer the Dynon Road transfer station for its proximity to the CBD, they do not view the Melbourne Regional Landfill as a viable alternative.

Ultimately, the ACCC determined that the acquisition is unlikely to substantially lessen competition in the supply of waste collection and disposal services for both commercial and municipal waste in Melbourne. The commission expects rival landfills and transfer stations to continue competing for waste volumes post-acquisition.