Regulator Blocks BRP’s Sale of Telwater to Yamaha Citing Competition Concerns

In a surprising and unexpected move, the Australian Competition and Consumer Commission (ACCC) has formally opposed the proposed sale of Australian boat manufacturer Telwater by Bombardier Recreational Products (BRP to Yamaha Motor Australia, a subsidiary of Yamaha Motor Company. 

The regulator’s decision is a significant setback for a deal that had been progressing through regulatory review for months.

In a very brief press release, BRP acknowledged the ACCC's findings and stated: "BRP is considering the ACCC's decision and will be evaluating all available options to determine the best path forward."

The sale was announced in April 2025 when BRP agreed to sell 100% of Telwater to Yamaha, along with its Queensland manufacturing and warehouse facility. The move was part of BRP’s ongoing divestment of its marine portfolio, which it announced in late 2024. BRP said as part of the divestment it would be selling off the entirety of its marine portfolio in order to focus on its popular Sea-Doo brand, plus its other recreational product lines, which includes Ski-Doo snow machines, Can-Am UTVs and ATVS, and Rotax engines. BRP sold the Manitou Pontoon brand to Bentley in July 2025. They also announced BRP CEO José Boisjoli would be stepping down by the end of 2025.

Now a significant part of that divestment is being called into question with the Telwater sale in limbo. As of April 30th, 2025, Telwater showed as a discontinued operation on BRP’s financial statements.

After an extended review process, the ACCC concluded that the combination of Yamaha’s outboard motor leadership and Telwater’s dominant position in the aluminum boat market would likely result in a “substantial lessening of competition” in the wholesale supply of outboard motors in Australia. Specifically, the regulator noted that Telwater holds an estimated 60% to 70% share of the local aluminum boat market through its key brands — Quintrex, Stacer and Yellowfin — and that Yamaha is the leading supplier of outboard motors. These overlapping strengths raised red flags about potential anticompetitive effects if the two businesses were combined.

At its core, the ACCC’s concerns focus on several mechanisms through which the expanding conglomerate could exert market power, including "bundling and tying strategies," which can further limit competition by minimizing options for other players in the retail space. A bundling strategy could potentially encourage or require dealers that carry Telwater boats to also sell Yamaha outboards, effectively leveraging Telwater’s dealer network to reinforce Yamaha’s dominance in the motor market. The ACCC stated that such a practice could disadvantage rival outboard motor suppliers, leading to higher prices, reduced choice, and increased distribution costs for competitors looking to maintain or expand their presence in Australia.

For its part, BRP has acknowledged the ACCC’s formal opposition and is evaluating its options. BRP also reiterated that it remains the owner of Telwater and will continue to operate the business as usual while assessing the road ahead. BRP also stated that the blocked sale is not expected to impact its 2026 fiscal year disclosures, which, in effect, underscores Telwater’s relatively small contribution to the company’s broader revenue.

The outcome now leaves Yamaha with an uncertain path forward. It also remains to be seen whether Yamaha, BRP, or other stakeholders will, or can, revise or modify the deal. There is also the possibility of a legal challenge against the regulators, or exploring alternative strategies that would address the ACCC’s concerns.

A formal announcement from both parties is expected in early 2026 as both sides transition into next year's first fiscal quarter and formalize their plans for the upcoming summer season. #news #brp #yamaha