Whilst the ACCC conceded that the acquisition would result in the “lessening of competition”, it said the threat of customers switching to global competitors such as Veolia, Suez and Remondis would constrain Cleanaway from significantly increasing prices or decreasing service levels. Cleanaway shares were up 2% following the announcement.
I think the announcement is great news for Cleanaway shareholders. Buying out a competitor gives them more market share and economies of scale.
I also think perhaps the ACCC might be underestimating the “stickiness” of the product. It’s not every day that companies will decide to change their waste management company.
If Cleanaway is not for you, you must read about these ASX companies that are about to raise their dividends!
It's been a nail-biter of a reporting season here in the first half of 2018.
But the real action, in my opinion, is what companies are doing with dividends.
What does this mean for you? Well there is one stock I've found that could very well turn out to be THE best buy of 2018. And while there's no such thing as a 'sure thing' when it comes to investing - this ripper might come as close as I've ever seen.
You can follow Kevin on Twitter @KevinGandiya.
The Motley Fool Australia has recommended Tox Free Solutions Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.