From today's AFR:Waste giant aims bigger as ACCC probes...

From today's AFR:

Waste giant aims bigger as ACCC probes industry

https://www.copyright link/business/infrastructure/wastegiant-suez-signals-sydney-expansion-as-accc-probes-industry-20181204-h18oqc

Suez wants to expand its Badgery's Creek landfill...

It comes as rival Bingo hit a roadblock last week in its plans to acquire competitor Dial-a-Dump for $578 million when the Australian Competition and Consumer Commission raised concerns about the acquisition. Bingo has argued that it needed to become bigger to be able to compete with large global players such as Suez.Suez was one of three big firms in the waste management industry forced by the ACCC on Monday to amend standard contracts deemed by the regulator to be potentially unfair to customers who under the previous regime were forced to pay onerous exit fees to get out of contracts after price increases were imposed. The other two firms were Cleanaway and Visy Recycling.    Cleanaway said in a statement that the company was ‘‘committed to high ethical standards and behaviour’’. ‘‘As such, we have reviewed and amended our small business contracts in cooperation with the ACCC, and believe they deliver a good outcome for our customers,’’ Cleanaway said.The ACCC said Visy, Suez and Cleanaway would all make changes to contract clauses that previously had allowed them to unilaterally increase their prices in specific circumstances and impose penalties on customers who wanted to exit their contracts before the end of the contract term.

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ash here.

While no company wants to fall foul of competition regulators, particularly on onerous contracts, this does point to the significant market concentration in waste. CWY's collection of environmentally licensed assets are irreplaceable and set to generate outsize returns.

ACCC or no, civic demand and physical landfill constraints will drive more complete and consistent separation and recycling of waste.  State governments will set standards reflecting citizen expectations. There are only a few companies with the capital and skills to build the facilities required.

CWY is exquisitely placed.

Ash