Consumer protection group clears acquisition of Kildare-based recycling company

The Competition and Consumer Protection Commission (CCPC) has cleared the acquisition of a Kildare-based recycling company.

It was previously reported that Bord na Móna had been trying to sell off the waste management business since early 2024, which is headquartered in Newbridge.

And back in December, it was estimated by sources that the deal was likely to be worth more than €55 million.

Now, according to the CCPC, it has cleared, subject to a number of legally binding commitments, the proposed acquisition by KAES Recycling Holdings Ltd (which is part of the KWD Group) of Bord na Móna Recycling Limited.

Previously, the CCPC was notified about the proposed acquisition on Friday, February 7 last, following pre-notification discussions between the merging parties and the CCPC’s case team. 

The CCPC explained that it undertook "a preliminary investigation which looked at how the deal would affect levels of competition between providers of waste collection services."

"During this investigation, the CCPC had particular concerns about how levels of competition in certain parts of Leinster and Munster would be affected by the proposed acquisition," the organisation said. "To address the CCPC’s concerns, KAES Recycling has agreed to divest a certain number of domestic and 'commercial & industrial' customers in these areas to another waste collection provider, to be approved by the CCPC."

The CCPC also said that it has approved similar remedies in previous waste mergers, such as Thorntons / City Bin and Pandagreen / Exomex. 

OBLIGATIONS

The commitments given by KAES Recycling also include obligations that will ensure that transferring customers will be supported throughout the process, and that they will be fully informed of their rights and options.  

An independent monitoring trustee will be appointed to make sure that KAES Recycling complies with these commitments.  

However, the CCPC said that it continues to be of the view that the household waste collection market in Ireland "is not delivering strong outcomes for consumers".

The group added: "It continues to be the CCPC’s view that structural changes are required in this market and that an economic regulator for household waste collection should be established."

The CCPC also pointed to its 2018 report and recommendations on the Operation of the Household Waste Collection Market in Ireland, which can be viewed here. 

READ NEXT: This car parked illegally in disabled bay in Kildare this week