Yamaha’s plans to buy Bombardier’s majority stake in Quintrex producer Telwater hits a snag

Plans by Yamaha Motor to acquire Telwater, Australia’s largest manufacturer of aluminium trailer boats, from Canadian marine giant Bombardier Recreation Products Inc (BRP) have landed in stormy waters with the national competition watchdog.

The Australian Competition and Consumer Commission says the deal by Yamaha Motor Australia to buy an 80 per cent stake in the Gold Coast-based Telwater could substantially lessen competition in the wholesale supply of outboard motors in Australia.

BRP, which manufactures Ski-Doo and Lynx snowmobiles as well as Sea-Doo watercraft, acquired the 80 per cent interest in Telwater in 2019 from co-founder and managing director Paul Phelan. Phelan will retain his 20 per cent should the Yamaha acquisition proceed.

Telwater is a major player in the recreational marine sector, producing more than 8,000 boats and 5,500 trailers a year under high-profile brands such as Quintrex, Stacer and Savage. The company employs about 300 staff at its Gold Coast manufacturing facility.

Yamaha Motor Australia, a subsidiary of Japan’s Yamaha Motor Co, announced in April plans to buy all the shares that BRP owns in Telwater to expand its Australian sales network and shore up its base in the national outboard motor business.

The ACCC, in outlining its preliminary competition concerns over the deal, says in addition to affecting the outboard motors market, the acquisition could also limit access by rival suppliers of trailer boats to dealers and customers.

“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,” says 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.

“Linking the wholesale supply of Yamaha outboard motors with Telwater aluminium trailer boats could limit how effectively existing and future rival wholesale suppliers of aluminium boats and outboard motors can compete post-merger.

“This could ultimately lead to higher prices and reduced choice or quality for consumers seeking to purchase a new aluminium trailer boat or outboard motor.”

Telwater operates a major production facility at Coomera in the Gold Coast Marine Precinct where it manufactures, fits and warehouses aluminium trailer boats widely used for recreational fishing.

Telwater’s custom-fitted trailers are sold together with its boats while the company also supplies outboard motors to dealers as part of some packages.

The ACCC notes that Telwater is a non-exclusive distributor of Mercury outboard motors, while Mercury also supplies its outboard motors to dealers directly or through wholesalers.

Telwater also supplies Rotax outboard motors, which are manufactured and distributed by BRP, as part of a package with some of its boats.

While Yamaha doesn’t manufacture boats in Australia, the company’s subsidiaries manufacture trailer boats overseas for international markets.

The ACCC points out that Yamaha and a related business have supplied a small number of these trailer boats to dealers in Australia, primarily via a third-party Australian distributor, and the company owns the trademarks for a small number of aluminium trailer boat and trailer brands.

BRP announced in October last year its intention to sell its 80 per cent interest in Telwater to focus on growth opportunities in the powersports sector and to “improve its margin profile”.

The Canadian group was scheduled to settle the sale to Yamaha Motor in the current quarter.

The ACCC will hand down its ruling on the buyout after reviewing submissions from interested parties by 23 October 2025.