The Australian Competition and Consumer Commission (ACCC) has decided to oppose Yamaha Motor Australia Pty Ltd’s proposed acquisition of Telwater Pty Ltd, concluding that the transaction would likely substantially lessen competition in the wholesale supply of outboard motors in Australia. The decision follows a comprehensive investigation into the potential effects of the acquisition on market dynamics and consumer choice.
Telwater is the market leader in aluminium trailer boats, with a market share of approximately 60–70 percent through its Quintrex, Stacer, and Yellowfin brands. Yamaha, meanwhile, is the leading supplier of outboard motors in the country. The ACCC found that a combined Yamaha/Telwater entity could leverage Telwater’s dominant position in aluminium trailer boats to restrict competition in the outboard motor market, potentially through bundling or tying arrangements.
ACCC Commissioner Dr Philip Williams explained that such arrangements could require or incentivise dealers who stock Telwater boats to also sell Yamaha outboard motors. “This could result in competing outboard motor suppliers losing access to key dealer networks, facing higher distribution costs, and ultimately being less able to compete effectively,” Dr Williams said. He added that these dynamics would likely lead to higher prices, reduced product quality, and fewer choices for consumers.
The ACCC’s assessment focused on the national wholesale market for outboard motors but also noted potential competition concerns in specific local markets. Bundling—selling boats and motors together at a single price—and tying—making the purchase of a boat conditional on buying a Yamaha motor—were highlighted as key strategies that could be employed to foreclose competition.
Yamaha had proposed acquiring 100 percent of Telwater’s shares from Bombardier Recreation Products Inc, along with a Coomera, Queensland manufacturing and warehousing facility. While Yamaha manufactures outboard motors in Japan, it does not produce boats in Australia, whereas Telwater manufactures aluminium trailer boats and trailers domestically.
Trailer boats, typically used for recreational activities such as fishing and cruising, are often paired with outboard motors. The complementary nature of these products was central to the ACCC’s assessment of potential competitive harm.
The ACCC’s preliminary concerns regarding the acquisition were first outlined in its Statement of Issues in October 2025. Following the detailed review, the Commission concluded that the proposed merger would likely substantially lessen competition, particularly by disadvantaging rival outboard motor suppliers, and therefore opposed the acquisition.
For further information, the ACCC’s public register contains details on the case: Yamaha Motor Australia Pty Ltd – Telwater Pty Ltd.