ACCC rubbishes Dial-a-Dump deal

SHARES in waste management company Bingo Industries have fallen after the competition watchdog raised concerns about its proposed $577.5-million buyout of Diala-Dump.

The deal would make Bingo the biggest building and demolition waste collection company in Sydney and diminish competition landfill and to Competition Commission.

Other facilities charged significantly more for heavy loads or were too far away to put price-pressure on Bingo, watchdog chair Rod Sims said in a statement yesterday.

“The acquisition would remove future competition between for processing, collections, according the Australian and Consumer Bingo’s and Dial-aDump’s dry landfills, which may lead to higher gate fees than would be likely without the acquisition,” he said.

“Competition between Sydney landfills is likely to become more important after the introduction of the Queensland landfill levy, which will make transporting waste to Queensland more expensive.”

Bingo shares tumbled on the commentary, closing 5.3 per cent, or 12c, lower at $2.15.

The industry relied heavily on the three levels of the supply chain – collection, processing and landfill – and affordable access to processing facilities was needed, the ACCC said. The watchdog is investigating the issues and has called for submissions by December 13 before a decision expected on February 21.