The competition watchdog has waved through Bingo's acquisition of rival Dial-a-Dump on condition the ASX-listed waste management firm divests its eastern Sydney recycling centre.

The Australian Competition and Consumer Commission (ACCC) said it would not oppose the proposed $578 million acquisition but that the sale of the Banksmeadow processing facility was needed to maintain competition in Sydney's eastern suburbs and CBD.

Bingo last week flagged a poor first-half performance - since confirmed with a 25 per cent decline in profit - prompting its shares to halve in value.

AAP