<p>The Australian Competition and Consumer Commission will carefully assess the 50% sale of Pacific National and will not approve an acquisition potentially leading to the lessening of competition through “benign neglect or the buy-in of a passive investor”, ACCC chairman Graeme Samuel said yesterday (Wednesday, October 11).</p> <p>The divestment of a 50% stake in Pacific National was a requirement by the ACCC on the rail operator’s owner, Toll Holdings, for allowing its takeover of Patrick Holdings.</p> <p>“The divestiture of Toll’s assets is not the end of the matter for the commission. Our goal is to increase competition and as such, the commission will carefully consider all prospective investors looking to take up those assets,” he said.</p> <p>“For example, it won’t be good enough for investors to acquire a half interest in Pacific National if it intends to hand management responsibility to Toll.”</p> <p>Toll’s general management undertakings required it not to discriminate in favour of Pacific National, Mr Samuel said, and required Toll to maintain an arm’s length approach to Pacific National’s management – that is, no access to Pacific National customer information.</p> <p>Mr Samuel said consultations with the market told the ACCC Toll’s commitment to divest 50% of Pacific National, along with other structural and behavioural undertakings, would reduce its ability to have any additional influence over the activities of Pacific National. </p> <p>“The undertakings also paved the way for the entry into the non-bulk, east-west, rail line haul service, and provide additional safeguards, including non-discrimination clauses to prevent Pacific National – and Patrick – discriminating in favour of Toll,” he said.</p> <p>Mr Samuel broadly defined the ACCC’s underlying philosophy on the role of competition – activity resulting in more efficient, innovative and flexible firms, greater choice and lower prices for consumers, and a means of promoting community welfare. </p> <p>“Markets that work in this way – that is, with the fundamental principals of competition – are our aim,” he said.</p> <p>“But certain areas of the transport sector – such as ports and rail – have high barriers to entry, entrenched players, and national monopoly infrastructure. </p> <p>“If left to its own devices, the industry would not be fair and competitive without regulation setting some of the rules.”</p> <br />