The BINGO Industries Ltd (ASX: BIN) share price has jumped 4.89% higher to $1.89 on Tuesday.
Why has the BINGO share price jumped?
BINGO announced this morning that it has offered to divest its Banksmeadow waste processing facility in response to ACCC concerns regarding the company's proposed acquisition of Dial a Dump Industries Pty Ltd.
The ACCC announced it will consult with market participants to help determine whether the divestment will be sufficient to address their competition concerns. The decision to undergo a consultation process should not be taken as an indication that the ACCC will accept BINGO's proposal or give the acquisition a green light. Regardless, the market responded positively to the news.
At the end of November, the ACCC raised concerns about BINGO's proposed acquisition of Dial-a-Dump. ACCC Chair Rod Sims said, "Our preliminary view is that the acquisition would remove Bingo's most substantial competitor for B&D [building and demolition] waste processing, particularly in the Eastern Suburbs and inner Sydney."
Bingo and Dial-a-Dump operate building and demolition waste collection and processing services in the Greater Sydney area. Additionally, Bingo and Dial-a-Dump are future competitors for dry landfill services when Bingo's Patons Lane facility becomes operational in 2019.
Despite today's spike, the BINGO Industries share price has fallen 24% over the last 12 months.
