NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

UPDATE 1-Australia raises concerns over $6.5 bln Asciano buyout

Published 26/05/2016, 10:03 am
© Reuters.  UPDATE 1-Australia raises concerns over $6.5 bln Asciano buyout
ASX
-
QUB
-
BN
-

(Adds quotes, deal context, decision deferral)

SYDNEY, May 26 (Reuters) - Australia's antitrust watchdog said on Thursday a proposed A$9.1 billion ($6.5 billion) buyout of rail and port giant Asciano Ltd ASX.AX by a host of global investors may hurt competition in the rail freight industry.

The Australian Competition and Consumer Commission (ACCC) said the planned takeover by Canada's Brookfield Asset Management Inc BAMa.TO and Australian cargo handler Qube Holdings Ltd QUB.AX may give Qube unfair access to services contracts with Asciano's ports.

Asciano's port business "may provide preferential access to Qube and ACFS vehicles, and Qube regional export trains running into Port Botany, and raise rivals' costs", ACCC Chairman Rod Sims said. ACFS is a reference to Asciano's half-owned Australian Container Freight Services Pty Ltd.

"There are also concerns regarding foreclosure of rival stevedores," Sims added.

The ACCC has previously raised concerns about other aspects of the proposed deal, first announced a year ago. But it has been required to re-start its examination due to changes in the proposed deal itself, notably the decision by Brookfield and Qube to end a bid war and make a joint offer instead.

The ACCC had been scheduled to give its final ruling on whether to allow the takeover on Thursday, but said it was inviting more industry submissions and would now give its final decision on July 21.

($1 = 1.3920 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.