Australia's Bingo gets regulatory nod for Dial-a-Dump, plans share buyback

(Adds background on the acquisition)

Feb 28 (Reuters) - Waste management firm Bingo Industries Ltd on Thursday received regulatory approval for its planned acquisition of smaller rival Dial-a-Dump, and said it will conduct a share buyback.

Bingo plans to buy back of up to A$75 million ($53.5 million) of its ordinary shares on-market, the company said in a statement.

The Australian Competition and Consumer Commission (ACCC) said separately that it had decided not to oppose the planned acquisition of Dial-a-Dump after Bingo agreed to sell its Banksmeadow processing facility in New South Wales state.

"We have concluded that the proposed acquisition, taking into consideration the divestiture undertaking, would be unlikely to substantially lessen competition in any market,” ACCC Chair Rod Sims said.

The ACCC had raised concerns about the acquisition in November, saying it could harm future competition in the market for processing, landfill and collection of building and demolition waste.

Bingo announced the A$577.5 million ($421.7 million) acquisition in August last year in a bid to take advantage of a Chinese ban on waste imports. The deal could make the company the biggest waste collector in Sydney, Australia's most populous city.

Bingo shares rose 7 percent in morning trade in a steady broader market.

($1 = 1.4010 Australian dollars) (Reporting by Shanima A in Bengaluru; Editing by Richard Pullin)

2019-02-28 01:13:55

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