Cleanaway (ASX:CWY) share price lifts on 'critical' court win

Cleanaway has won a crucial court case, sparking a rise in its share price.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Cleanaway Waste Management Ltd (ASX: CWY) share price finished the day slightly higher after the High Court dismissed a challenge to its Melbourne regional landfill works approval.

By market close, the Cleanaway share price was trading 0.36% higher at $2.78, adding to a 50% yearly return.

The company has been under fire by the Brimbank Council and Ravenhall residents over contaminated soil and garbage odour stemming from its waste plant.

It has been a long legal stoush for Cleanaway. Let's look at what the decision means for the waste management and recycling station company.

Cleanaway's court case

Australia's High Court today dismissed a legal challenge against approval for Cleanaway to extend its waste management station, Melbourne Regional Landfill, in Ravenhall, Victoria.

In June 2017, the Planning Minister for Victoria issued planning approval for the extension that would continue Cleanaway's licence to operate the facility until 2046. The company also required works approvals to expand the facility.

Cleanaway has now faced and won legal challenges in the High Court, Court of Appeal and Supreme Court. Today's decision was the last of these court cases.

The company also faced a higher-profile legal battle over its planned acquisition of French waste company Suez's Australian operations. That deal eventually collapsed.

Cleanaway management comments

Chief operating officer Brendan Gill welcomed the decision:

Cleanaway welcomes the High Court decision today, confirming that the Melbourne Regional Landfill can continue to provide an essential waste service for the community well into the future.

Securing the continued long‐term operations at the site supports our Footprint 2025 Strategy. The site is a waste management hub of state importance that provides critical waste management services, including for
residual waste streams that cannot be recycled.

Cleanaway share price snapshot

The Cleanaway share price has been subject to a balancing act from investors over the past 12 months. Despite rocky news reports, the company's record results have largely led market sentiment.

Cleanaway shares are up 19% this year-to-date and 12.9% this month. It has also beaten the industrials sector by 45% over the past year.

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Successful group of people applauding in a business meeting and looking very happy.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to buy these shares.

Read more »

Wooden blocks spelling rebound with coins on top.
Broker Notes

Can Life360 shares recover from the AI fuelled sell-off?

A leading expert looks into the AI-driven pressure hitting Life360 shares.

Read more »

An engineer takes a break on a staircase and looks out over a huge open pit coal mine as the sun rises in the background.
Broker Notes

Up 49% in a year, should you buy BHP shares for their 'stability and income'?

A leading expert delivers his forecast for BHP’s fast-rising shares.

Read more »

A financial expert or broker looks worried as he checks out a graph showing market volatility.
Broker Notes

Buy, hold, sell: Pro Medicus, Life360, A2 Milk shares

Expert analysts reveal their latest recommendations on 3 ASX 200 stocks.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Atlas Arteria, Forrestania, Megaport, and WA1 shares are charging higher today

These shares are starting the week positively. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Cochlear, Karoon Energy, Origin Energy, and WiseTech shares are falling today

These shares are starting the week in the red. Let's find out why.

Read more »

Multiple ASX share investors take on one another in a tug of war in a high rise building.
Mergers & Acquisitions

Why the Atlas Arteria share price is rocketing 14% today

Atlas Arteria shares jump after a $6.9 billion takeover proposal lands.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Broker Notes

Buy, hold, sell: Goodman Group, BHP, Westpac shares

ASX 200 shares are in the red for a fifth consecutive session amid stalled peace talks between the US and…

Read more »