Specialist waste management firm Ecowaste Southwest’s acquisition by Stericycle has been referred to the Competition Commission for further investigation by the Office of Fair Trading (OFT).
Ecowaste operates across the South West and owns a treatment facility at Avonmouth while Stericycle’s UK subsidiary SRCL provides similar services throughout England and Wales. The two businesses had previously been direct rivals.
The OFT believes the acquisition would give rise to competition concerns in the collection, processing and disposal of healthcare risk waste in the wider Bristol area.
The OFT is not confident that there is sufficient competition in the area from other competitors to prevent SRCL from raising prices or reducing service in the future.
OFT chief economist and decision maker in this case, Amelia Fletcher, said: “This merger brings together the two main providers of waste management services in the wider area around Bristol.
“The loss of rivalry, due to the merger, may result in a substantial lessening of competition, potentially leading to higher prices or reducing service to customers in the local area, including hospitals and other public sector customers.
“Given that we have not been able to rule out competition concerns we are referring the merger for a fuller investigation to the Competition Commission.”
