The Australian Competition and Consumer Commission (ACCC) has raised serious concerns that Yamaha Motor Australia’s proposed acquisition of Telwater, the country’s largest aluminium boat manufacturer, could reduce competition and limit consumer choice in the recreational marine industry.
In a statement released on Thursday, the regulator said the merger may substantially lessen competition in the wholesale supply of outboard motors across Australia. Yamaha, one of the nation’s leading outboard motor suppliers, faces competition from brands such as Mercury and Suzuki. Telwater, meanwhile, dominates the aluminium trailer boat market with its well-known Quintrex, Stacer and Yellowfin brands—vessels that many dealers describe as essential products for their businesses.
According to the ACCC’s preliminary view, the merger could give Yamaha the power and incentive to link the supply of its outboard motors with Telwater’s aluminium boats, effectively tying two key product markets together. Such a move could make it more difficult for rival motor suppliers to compete and could restrict the range of options available to boat dealers and consumers.
“We are concerned that, following the acquisition, Yamaha would have the ability and incentive to link the wholesale supply of Yamaha outboard motors to Telwater aluminium trailer boats, for example by requiring dealers of Telwater boats to also become Yamaha outboard motor dealers,” said ACCC Commissioner Dr Philip Williams. “This acquisition could make it much harder for other outboard motor suppliers to compete effectively with Yamaha, ultimately reducing the choice and competitive offerings available to consumers.”
The ACCC also warned that the merger could give the combined entity the ability to reduce access for rival suppliers of aluminium boats, further consolidating Yamaha’s position in the market. Linking boat and motor sales, the regulator said, could harm effective competition after the merger, leading to higher prices or reduced quality for recreational boating customers.
Dr Williams added that the complementary nature of aluminium boats and outboard motors made the merger particularly sensitive from a competition perspective. “These products are often purchased together, so the ability to control access to one can have serious effects on competition in the other,” he said.
The regulator is seeking submissions from market participants and interested parties in response to its Statement of Issues, with feedback due by 23 October 2025. The ACCC will then decide whether to oppose the deal, clear it, or require remedies to address potential anti-competitive effects.
Yamaha Motor Company Ltd, based in Japan, manufactures outboard motors primarily in Asia and imports them into Australia through its local subsidiary. It does not currently produce boats domestically, though it owns several dormant boat and trailer trademarks. Telwater, based in Coomera, Queensland, manufactures aluminium boats and trailers and supplies them through a national dealer network. The company also distributes a limited number of Mercury and Rotax outboard motors as part of package deals.
The proposed acquisition includes both Telwater’s shares—currently owned by Bombardier Recreational Products Inc.—and its Queensland manufacturing property. The deal would mark a significant vertical integration for Yamaha in the Australian boating sector, combining a leading motor supplier with the dominant domestic producer of aluminium boats.
The ACCC said its investigation will focus on whether such integration would create unfair barriers for competing suppliers and reduce competitive tension in a market already concentrated among a few major players.
The regulator’s full statement and supporting documents are available on its website under Yamaha Motor Australia Pty Ltd – Telwater Pty Ltd.
