Cleanaway’s Acquisition of Contract Resources Gets ACCC Go-Ahead: What It Means for Industrial Services

Published: 4 July 2025

Source: ACCC Media Release

Australia’s largest waste management company, Cleanaway Waste Management Limited (ASX: CWY), has received the green light from the Australian Competition and Consumer Commission (ACCC) to acquire Contract Resources Group Pty Ltd, a specialist industrial services provider.

The ACCC has confirmed that, after a detailed review, it will not oppose the acquisition, concluding it’s unlikely to substantially reduce competition in either industrial services or waste management markets.

 What Do Cleanaway and Contract Resources Do?

Both companies operate in the industrial services space — providing maintenance and cleaning services to facilities in sectors like oil, gas, mining and infrastructure. Cleanaway also dominates the general waste management sector, while Contract Resources focuses more on highly specialised industrial services, including:

• Catalyst handling (the removal and replacement of catalysts used in energy and chemical processes)

• Specialised mechanical services, such as maintenance of heat exchangers and industrial reactors

These types of services are crucial in high-risk, high-value environments, such as refineries and chemical plants.

Why the ACCC Approved the Deal

The ACCC's investigation looked at two key areas:

1. Competition in Industrial Services

While there is some overlap between the two businesses in baseline industrial services (e.g. tank cleaning, decontamination, vacuum loading), the ACCC found that:

• Contract Resources' core services are highly specialised, and not offered by Cleanaway.

• Alternative providers exist for many services where there is overlap.

• Large customers in the oil and gas sector are well-resourced and have historically sponsored new suppliers into the market when necessary.

2. Leveraging Across Services

The ACCC also examined whether Cleanaway could force customers to take up its waste management services in exchange for access to Contract Resources’ specialist services — a strategy known as “tying”.

Their conclusion? This approach wouldn’t be commercially viable, as customers can readily seek specialist services elsewhere.

“Overall, we did not find that the proposed acquisition is likely to substantially lessen competition,” said ACCC Commissioner Dr Philip Williams.

What This Means for Industry Contracts

If you operate in energy, resources, infrastructure or heavy industry, this deal is a timely reminder to review your service contracts. While the ACCC’s role is to assess competition at the market level, businesses still need to protect themselves contractually at the commercial level, particularly when large suppliers consolidate power across multiple service categories.

For example:

• Does your service agreement lock you into bundled services?

• Can you switch suppliers without penalty if performance drops?

• Are there exclusivity or “preferred provider” clauses in your industrial or waste management contracts?

Not Sure Where You Stand? Let’s Match You with the Right Commercial Lawyer

At Bane Legal Services, we don’t provide legal advice — but we do connect you with commercial lawyers who specialise in contracts, competition law, and complex procurement in industrial sectors.

With over 30 years’ experience in business and logistics, we understand the real-world impact of mergers like this. Whether you’re a facility operator, procurement manager or executive decision-maker, we’ll help you find the legal support to strengthen your contracts and mitigate risk.

Original Source: ACCC Media Release – Cleanaway’s proposed acquisition of Contract Resources not opposed (4 July 2025)