ACCC Blocks Yamaha–Telwater Deal Over Competition Concerns in Australia’s Marine Industry

The Australian Competition and Consumer Commission (ACCC) has moved to block Yamaha Motor Australia Pty Ltd.’s proposed acquisition of Telwater Pty. Ltd., citing serious concerns that the deal would substantially lessen competition in Australia’s outboard motor market.

In a media release dated 18 December 2025, the ACCC confirmed that, following an in-depth investigation, it has decided to oppose the transaction due to the risk of higher prices, reduced product quality and fewer choices for Australian consumers.

ACCC warns Yamaha–Telwater deal could pressure dealers and disadvantage rival outboard motor suppliers across Australia.

Why the ACCC intervened

Telwater is the dominant manufacturer and supplier of aluminium trailer boats in Australia, controlling an estimated 60-70 per cent market share through its well-known brands Quintrex, Stacer and Yellowfin. Yamaha, meanwhile, is the leading supplier of outboard motors nationwide.

The ACCC’s concern is not simply size, but market leverage.

According to ACCC Commissioner Dr. Philip Williams, the proposed acquisition would give the combined Yamaha/Telwater entity both the ability and incentive to use Telwater’s market dominance in boats to advantage Yamaha’s position in outboard motors.

In practical terms, the ACCC fears this could occur through bundling or tying strategies, such as:

• Offering discounted Telwater boat packages only when paired with Yamaha outboard motors; or

• Requiring Telwater dealers to stock Yamaha outboards as a condition of accessing Telwater boats.

Impact on dealers and rival suppliers

The ACCC found that such conduct would likely force many dealers to shift some or all of their outboard motor purchases to Yamaha, even where they currently stock competing brands.

This would place rival outboard motor suppliers at a significant disadvantage, potentially:

• Cutting off access to Telwater’s extensive dealer network;

• Increasing distribution costs; and

• Making it difficult to re-establish or expand market presence in Australia.

The end result, the ACCC concluded, would be a substantial lessening of competition, particularly in the national wholesale market for outboard motors, with additional risks in certain local markets.

Why bundling and tying matter under competition law

Aluminium trailer boats and outboard motors are complementary products, often purchased together. While bundling is not illegal in itself, it becomes problematic where a dominant business uses it to restrict competition.

The ACCC’s analysis focused heavily on whether the merged entity could unfairly link the supply of Telwater boats with Yamaha motors in a way that excluded competitors, a key issue addressed under the ACCC’s Merger Assessment Guidelines, particularly around conglomerate effects.

What this means for businesses

This decision is a timely reminder that mergers involving vertical or complementary products can attract serious regulatory scrutiny, even where the businesses do not directly compete.

For manufacturers, wholesalers, franchise systems and dealer networks, the case highlights:

• The risks of exclusivity arrangements post-acquisition;

• How bundling strategies can cross competition law boundaries; and

• The importance of early legal assessment when planning complex acquisitions.

How Bane Legal Services can help

Bane Legal Services is not a law firm and does not provide legal advice. However, with more than 30 years of business experience, we act as a trusted legal matchmaker, connecting business owners, franchisors and executives with the right commercial and competition lawyers for their specific situation.

If your business is considering a merger, acquisition, distribution restructure or exclusivity arrangement, particularly in regulated or concentrated markets, early legal guidance is critical.

Source: Adapted from the ACCC media release “ACCC opposes Yamaha’s proposed acquisition of Telwater”, published 18 December 2025 by the Australian Competition and Consumer Commission.