Cleanaway’s $X Million Contract Resources Acquisition Approved by ACCC

ACCC’s Green Light on a Strategic Acquisition

Cleanaway Waste Management Limited’s proposed acquisition of Contract Resources Group Pty Ltd has cleared a significant regulatory hurdle with the Australian Competition and Consumer Commission (ACCC) announcing it will not oppose the deal. This approval removes uncertainty for Cleanaway as it seeks to expand its footprint in industrial and waste management services across Australia.

The ACCC’s review focused on whether the merger would substantially reduce competition in markets where both companies operate. While both Cleanaway and Contract Resources provide a range of industrial services, the regulator found that Contract Resources specializes in niche offerings such as catalyst handling and complex mechanical maintenance; services that Cleanaway does not currently supply.

Competition Remains Robust Despite Overlaps

For services where the two companies overlap, such as high-pressure water services and tank cleaning, the ACCC concluded that competition would remain strong. The merged entity would still face competition from alternative suppliers, and importantly, customers; particularly large oil and gas companies; have the capacity to sponsor new entrants or encourage existing competitors to expand.

ACCC Commissioner Dr Philip Williams highlighted that oil and gas sector customers are well-resourced and have previously supported new market entrants, reducing the risk of monopolistic behavior post-acquisition. This dynamic is a key factor in the ACCC’s confidence that the acquisition will not harm competition.

No Leverage of Specialist Services into Waste Management

The ACCC also examined whether Cleanaway could leverage Contract Resources’ specialist industrial services to force customers into using its waste management services, potentially stifling competition in that sector. The regulator found this strategy unlikely to be profitable, as customers have multiple options for sourcing specialist services independently.

This finding alleviates concerns that the acquisition could create a bundled service monopoly, preserving competitive tension in both industrial and waste management markets.

Looking Ahead

With regulatory approval secured, Cleanaway can now focus on integrating Contract Resources and potentially expanding its service offerings. The deal underscores the evolving landscape of industrial services in Australia, where specialization and customer influence play critical roles in maintaining competitive markets.