Bingo shares plunge as Australian watchdog frets over Dial A Dump deal

(Reuters) – Shares in Australian waste management and recycling company Bingo Industries Ltd BIN.AX plunged as much as 13% on Thursday after the competition regulator raised concerns over its $422 million acquisition of rival Dial A Dump.

The Australian Competition and Consumer Commission (ACCC) said the deal could have negative impacts on the construction and demolition (B&D) waste treatment, landfill and collection market.

“The acquisition would remove future competition between Bingo’s dry dumps and Dial A Dump, which could result in higher entry fees than would be likely without the acquisition,” the ACCC chairman said, Rod Sims, in a statement.

The ACCC said it would make a final decision on the matter by February 2019.

Bingo shares were down 8.4% to a one-year low at 2326 GMT, while the broader market was up 0.86%.

Bingo said in a statement that it would work with the regulator before its final decision.

Bingo had announced a 577.5 million Australian dollar ($421.7 million) acquisition of its smaller rival in August in a bid to take advantage of a Chinese ban on waste imports. The deal could make the company the biggest waste collector in Sydney, Australia’s most populous city.

China, which took around a third of Australia’s waste, earlier this year stopped accepting shipments of waste such as plastic and paper as part of a campaign against “foreign waste”.

Reporting by Ambar Warrick in Bengaluru; Editing by Sonya Hepinstall and Stephen Coates