Johns Lyng subsidiary Steamatic Australia can proceed with buying an 80% stake in a regional franchisee without notifying the competition watchdog.

The Australian Competition and Consumer Commission approved the subsidiary’s waiver application for the deal under the mandatory merger notification regime that began at the start of the year. 

A waiver option is permitted for acquisitions that do not raise material competition concerns. 

The commission says the proposed investment in Steamatic Epsom has “limited geographic scope … there are alternative suppliers of damage restoration services … [and] there is a low risk of foreclosure or other concerning vertical or conglomerate effects resulting from exclusionary conduct, bundling or tying post-acquisition. 

“In these circumstances, the ACCC does not consider it necessary to reach a concluded view on the likelihood of the notification thresholds being met.” 

Steamatic Epsom owns and operates seven branches across regional Victoria, NSW and Queensland.