Rubbish and recycling giant Cleanaway's $671 million takeover of rival Tox Free Solutions has been given the all clear by the competition watchdog.
The Australian Competition and Consumer Commission said Cleanaway's acquisition of Tox Free could reduce competition in some areas of waste collection and processing, but it has decided it will not oppose the deal.
"We considered that, in this case, the proposed acquisition is unlikely to meet the threshold of a substantial lessening of competition," ACCC Commissioner Roger Featherston said in a statement.
"We concluded that the threat of customers switching to competitors would constrain Cleanaway from increasing prices or decreasing service levels to a significant extent in any waste stream or geographic area."
Both companies collect, treat and dispose of municipal, commercial and industrial waste.
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The ACCC's investigation focused on where the operations of the two companies overlap, including hazardous waste processing in the mainland states and medical waste collection in Victoria.
The watchdog said consolidation in the waste industry was growing, and any further mergers or acquisitions of major players would be closely investigated.
Tox Free shareholders will vote on the proposed takeover on May 3, and if approved, the deal is expected to be implemented on May 25.
Cleanaway shares were up 2.5 cents, or 1.6 per cent, at $1.595 at 1515 AEST, while Tox Free shares were up one cent at $3.43.
