The municipal waste collection criticises apparently planned sale of company, which is owned by Green Dot. “If largest German disposer buys largest dual system provider, n competitive situation in market would deteriorate significantly”, said vice of Association of Municipal Companies (VKU), Patrick Hasenkamp, German press agency. “That would be like car company Volkswagen buying with Bosch Germany’s largest supplier – market power would be immense,” said Hasenkamp. According to Handelsblatt, disposal company Remondis wants to buy dual system Germany (DSD), which is owned by Green Dot. Remondis did not want to comment on “market rumors”.
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The Green Dot is a trademark of Cologne company DSD. It organizes collection, sorting and recycling of packaging waste for retailers. In Germany, manufacturers of packaged goods are obliged to bear costs of disposing of packaging mselves. The product manufacturers pay DSD to take over this task for m. If a manufacturer pays DSD for it, he may print green dot on its packaging. DSD n arranges orders for disposal of waste to waste collection, contract is awarded to cheapest supplier. In addition to municipal waste collection, private companies such as Remondis are also vying for orders.
13 Euro per year for disposal of packaging
Patrick Hasenkamp represents as vice of VKU 450 municipal waste disposal company in Germany, including urban waste. He says that if DSD were to sell to Remondis, Remondis might be able to see how municipal waste disposals are calculating ir bids. “DSD will continue to award cheapest waste collector, but his offer details could be passed on to his Remondis mor,” he said. As a result, company can secure an advantage over local and medium-sized competitors in next call for tenders.
According to Hasenkamp, competition could be weakened if competitors were to buy or disappear. In some areas of Germany, re are already only one bidder in certain disposal services. Lower competition could lead to higher prices for consumer. The VKU estimates that consumers in Germany pay an average of about 13 euros per year for disposal and collection of packaging. This value, said Hasenkamp, could rise significantly in a market dominated by a single group.
