Freight Rail

ACCC pushes back Asciano takeover rulings

Pacific National container. Photo: Cameron Boggs

Regulator the Australian Competition and Consumer Commission has set a new, later decision date of March 24 for its verdict on competing Asciano takeover bids.

The ACCC is considering the impact of bids from both a consortium led by Qube Holdings and supported by Global Infrastructure Partners, Canada Pension Plan Investment Board and CIC Capital Corporation, and one by a consortium assembled by Brookfield Asset Management including Brookfield Infrastructure Partners L.P.

The Brookfield bid has been supported by the Asciano board.

According to the regulator, the previous indicative decision date of February 18 was set on the assumption the transaction structure would be finalised earlier in the review process, however the transaction structure was not completed until January 28.

“The ACCC requires time to consult on Qube’s transaction structure, given we have only had details of the structure for a very short period,” ACCC chairman Rod Sims said.

“We also need to consider whether revised undertakings offered by Qube can be consulted on, and if so, time for that consultation to take place.”

The ACCC also wants more time to consider issues raised by market players regarding the Brookfield consortium acquisition, notably on undertakings offered by the company and to consider changes to those undertakings.

“We need to consult further with market participants about the proposed divestment of Asciano’s Pacific National intermodal rail operations, other vertical integration issues in Western Australia, and undertaking commitments in relation to the Dalrymple Bay Coal Terminal, and then give Brookfield an opportunity to respond,” Mr Sims, said.

The ACCC says these decision dates may change again.

“Although the decision dates are currently aligned the ACCC may finalise its consideration of one proposed acquisition prior to the other,” the regulator said.

This article originally appeared in Rail Express affiliate Lloyd’s List Australia.