The Australian Competition and Consumer Commission will not oppose Cleanaway Waste Management Ltd’s proposed acquisition of Contract Resources Group, concluding the deal is unlikely to substantially lessen competition in key markets.
The ACCC’s informal merger review examined overlap between the two companies in industrial services — such as high‑pressure water services, tank cleaning, vacuum loading and emergency response — and in waste management. It found Contract Resources specialises in services Cleanaway does not supply, notably catalyst handling and other specialised mechanical work for complex assets in the oil and gas sector.
“Cleanaway and Contract Resources compete mainly for customers in the oil and gas sector. These customers are generally large, well‑resourced organisations that could sponsor new entry or sponsor the expansion of existing rival suppliers” ACCC Commissioner Dr Philip Williams said. “We have seen oil and gas companies sponsor new entry before”.
The regulator also considered whether the merged group could leverage Contract Resources’ strength in specialist industrial services to force customers to buy Cleanaway’s waste services. The ACCC said that strategy would be unlikely to be profitable because customers have alternative ways to source specialist services and rivals remain capable of competing for business.
“Overall, we did not find that the proposed acquisition is likely to substantially lessen competition in the supply of industrial services or waste management services,” Dr Williams said.
Cleanaway, listed on the ASX as CWY, is one of Australia’s largest waste management and recycling firms and also provides baseline industrial services. Contract Resources is a specialist provider focused on maintenance and cleaning for high‑value assets in energy, oil and gas, and mining. The proposed deal would see Cleanaway acquire 100 per cent of Contract Resources; the target’s majority shareholders are private equity firms SCF Partners Inc and Viburnum Funds Pty Ltd.
The ACCC’s assessment applied the statutory test in section 50 of the Competition and Consumer Act, which bars acquisitions likely to have the effect of substantially lessening competition. Further details of the review are available on the ACCC’s public register.
