Woolworths Group (ASX:WOW), Coles Group (ASX:COL), and ALDI Stores received authorization from Australia's competition regulator to continue their collaboration to recycle stockpiled soft plastics and implement the pilot in-store collection program until July 31, 2026, the regulator said in a statement Thursday.
This will allow the soft plastics in-store collection pilot program to continue operating in Victoria and New South Wales and expand to other areas.
The Australian Competition and Consumer Commission first authorized the collaboration in November 2022.
The regulator's deputy chair Mick Keogh said the collaboration would allow the supermarkets to process the remaining REDcycle legacy stockpiles.
The REDcycle program collected and recycled soft plastics nationwide before its collapse in November 2022. The major supermarkets partnered with REDcycle to provide collection points for consumers to return their soft plastics in-store for collection by REDcycle.
The regulator will require the supermarkets to provide it with quarterly progress reports and minutes of each meeting of the Soft Plastics Taskforce, and all arrangements must immediately stop when the authorization expires or is revoked.
Woolworths' shares rose almost 1% in early trading on Thursday, while Coles' shares jumped nearly 5%.
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