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!
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
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.
- Warren Buffett is buying banks – should you too? – November 16, 2018 10:34am
- Telstra CFO to replace Elon Musk as Chair on Tesla Board – November 9, 2018 11:08am
- 5 ASX shares that I think are your best bet on Melbourne Cup Day – November 6, 2018 7:00am