Cleanaway completes $110 million Citywide Waste acquisition after ACCC green light

Australia’s largest waste management company, Cleanaway, has officially taken control of Citywide’s waste and recycling business in a $110 million deal that will reshape waste services across Melbourne’s inner city.

The sale, finalised on July 1, follows the Australian Competition and Consumer Commission’s (ACCC) decision in May not to oppose the acquisition after a lengthy investigation into potential competition impacts.

For Cleanaway, the deal is a major strategic expansion into Melbourne’s dense central and inner suburbs. It will add around 200 new team members, 100 vehicles, and – critically – the Dynon Rd transfer station in West Melbourne, Victoria’s second-largest transfer site, located just five kilometres from the CBD.

Cleanaway’s executive general manager solid waste services, Tracey Boyes, said she was “delighted” to welcome Citywide’s team.

“Together, we’ll continue delivering essential services to Melbourne’s communities while enhancing resource recovery outcomes across the CBD and surrounding areas,” Ms Boyes said.

She added that Cleanaway was particularly eager to continue serving the many commercial and industrial customers who rely on the Dynon Road facility – a vital part of Melbourne’s waste network.

A centrepiece of the agreement is the planned $45 million upgrade of Dynon Rd transfer station, with Cleanaway contributing $35 million and the City of Melbourne a further $10 million. The redevelopment aims to transform the ageing site into a modern, efficient, environmentally sustainable post-collection hub, better equipped to handle the city’s growing population and waste streams.

The City of Melbourne, which wholly owned Citywide through a subsidiary since its creation in 1995, will direct proceeds from the sale into a newly established Future Fund designed to finance strategic community projects for decades to come.

Lord Mayor Nick Reece described the sale as “the right decision for Melbourne,” stressing that it would deliver benefits beyond simply waste collection.

“This sale isn’t just about better waste services for residents – it’s also about creating a Future Fund that will benefit our community for years to come,” Cr Reece said.

The council has promised residents and businesses there will be no disruption to the high-quality waste collection services they expect and pledged to work closely with Cleanaway throughout the transition.

Cleanaway’s takeover follows an at-times rocky approval process. Last year, the ACCC raised concerns that acquiring Citywide Waste could reduce competition in Melbourne’s central and western regions, particularly given Cleanaway’s dominant position in disposal services through its Melbourne Regional Landfill at Ravenhall and network of transfer stations.

After extensive investigation – including industry consultation – the ACCC ultimately concluded that competition would not be substantially lessened. 

ACCC Commissioner Dr Philip Williams said that larger waste collectors would still have alternative disposal options even with Cleanaway owning both Dynon Rd and Melbourne Regional Landfill, and that smaller operators dependent on Dynon Rd would remain unaffected as they didn’t view Ravenhall as a viable alternative.

The transaction also closes a chapter of intense local political scrutiny. The City of Melbourne faced criticism for handling the sale with limited public consultation, despite Citywide’s waste business recording significant losses in recent years.

Despite these concerns, council leadership has insisted the sale was necessary to secure the long-term viability of local waste services while unlocking funds for future projects.

For Cleanaway, the acquisition cements its position as Australia’s leading player in municipal, commercial and industrial waste management, strengthening its network in Melbourne’s core at a time when the city’s population and waste output continue to surge.

As work begins on the Dynon Rd upgrade, Melbourne residents are being promised improved technology to handle everything from general rubbish to organics, glass and electronic waste, supporting the city’s sustainability and resource recovery goals. •