Panda told to offload Greenstar assets to seal takeover deal
Published 17/08/2016 | 02:30
Waste company Panda will have to sell some assets as part of its proposed takeover of rival bin collector Greenstar, the Competition and Consumer Protection Commission (CCPC) has ruled.
The CCPC said Panda - which is buying Greenstar from US private equity giant Cerberus - would be required to sell Greenstar's domestic waste collection businesses in Fingal and Dun Laoghaire-Rathdown.
Panda told the CCPC that it plans to offload the businesses to Greyhound, a deal for which it has signed non-binding heads of agreement.
If that deal does not proceed it will have to sell the businesses to another party or parties approved by the CCPC.
CCPC chairperson Isolde Goggin said the merger as initially proposed would have caused a "substantial reduction of competition for domestic waste customers in the Fingal and Dun Laoghaire-Rathdown areas." She said Panda's commitment to sell the assets in question meant customers in those areas would have the same amount of choice as they did before the merger.
"Consumers in Fingal and Dun Laoghaire-Rathdown who are transferred to the new provider will receive the same domestic waste collection service from the new provider on precisely the same terms and conditions... for the remainder of the term of their contracts," she added. Ms Goggin told the 'Sunday Independent' last week that there has been a "lot of issues" in the waste sector around consumer information.
"The companies have obligations to give consumers proper information - and we'll keep on their tail."