One of the best performers on the Australian share market on Thursday morning has been the Bingo Industries Ltd (ASX: BIN) share price.
The waste management company's shares were up as much as 27% at one stage. They have since dropped back a touch but still sit 18% higher at $1.71 at the time of writing.
Why is the BINGO share price rocketing higher?
This morning the company announced that the Australian Competition and Consumer Commission (ACCC) will not oppose its proposed acquisition of Dial A Dump Industries.
The ACCC made the decision after accepting a court-enforceable undertaking from BINGO to divest its recycling facility in Banksmeadow, New South Wales.
The company's managing director and chief executive officer, Daniel Tartak, was very pleased with the decision and believes it is an important step in "realising BINGO's vision and five-year strategy to be a fully vertically integrated business and diversify into new markets in NSW."
It will also allow the company to develop its Recycling Ecology Park at Eastern Creek. Mr Tartak expects this to allow the company "to process and recycle every type of waste, accelerate our vertical integration and compete more effectively with the larger local and international players."
I agree with Mr Tartak and believe this acquisition and the company's plans could put it in a position to deliver strong earnings growth over the next decade.
In addition to the ACCC's decision, this morning management announced that the BINGO board has approved the implementation of an on-market buy-back of up to $75 million of its ordinary shares. The buy-back is expected to commence on March 15 and will end 12 months from today.
Should you invest?
It has been a tough 12 months for BINGO and this has been reflected in its falling share price.
But this acquisition has the hallmarks of being a real game-changer for the company and one that I expect to create a lot of value for shareholders.
This could make BINGO a good long-term option along with fellow waste management company Cleanaway Waste Management Ltd (ASX: CWY).
