BIN) Gets ACCC Green Light for $578M Dial-a-Dump Purchase

Bingo Industries’ takeover of a major competitor for $578 million has been cleared by competition regulators on the condition that the waste management giant sell a Sydney treatment plant.

The Australian Competition and Consumer Commission (ACCC) said on Thursday that it would not oppose Bingo’s acquisition of private company Dial-a-Dump, but would have to unload its processing facility of Banksmeadow to maintain competition in the eastern suburbs of Sydney and the CBD.

The ACCC has conditionally approved Bingo’s acquisition of rival Dial-a-Dump.

News of the regulatory clearance and plans for a $75 million share buyback sent the company’s stock price up 13% to $1.64 shortly before noon on Thursday, helping to recoup some heavy losses last week. It closed 16.21% higher at $1.68.

Investors sent the stock nearly 50% tumbling on Feb. 18 after chief executive Daniel Tartak warned that a rapid downturn in the country’s housing market had weighed on demand for Bingo’s trash collection in the casino sector. construction and demolition, and forced a decline in profits.

Bingo’s takeover of Dial-a-Dump, announced in August last year, includes its fleet of 55 collection vehicles, its waste transfer station in Alexandria and the Eastern Creek landfill site in Sydney, the largest in the southern hemisphere with a capacity of up to 2 million tons. a year.

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“The transaction raised a number of significant concerns,” ACCC Chairman Rod Sims said. “Ultimately, we concluded that the proposed acquisition, given the divestiture commitment, would be unlikely to materially lessen competition in any market.”

The ACCC has accepted a court-enforceable undertaking from Bingo to divest the Banksmeadow facility, which Bingo earlier this year offered to sell to assuage ACCC concerns.

Mr Tartak described the ACCC’s decision as an important step in realizing Bingo’s five-year vision and strategy to be a fully vertically integrated business and to diversify into new markets in New South Wales.