Government to raise competition issue on Toll move

<p>The Federal Government was weighing up its response to Toll Holdings’s move to split the company, a spokesman for federal transport minister Mark Vaile told <em>Lloyd’s List DCN</em> yesterday (Monday, December 18) </p> <p>&#8220The proposed restructure of Toll Holdings is a commercial decision by the company’s board of directors,&#8221 the spokesman said. </p> <p>&#8220However, the Australian Government is concerned to ensure that it does not lessen competition and access to key infrastructure.</p> <p>&#8220The related request for a variation to certain undertakings related to the Patrick acquisition earlier in 2006 potentially raises competition issues.</p> <p>&#8220Any variation to the undertakings is a matter for the Australian Competition and Consumer Commission.</p> <p>&#8220The ACCC is currently conducting market inquiries to determine whether to accept or reject the proposed variation.</p> <p>&#8220The Department of Transport and Regional Services is currently preparing a submission to the ACCC.&#8221</p> <p>An ACCC spokeswoman this week said there was no official comment from chairman Graeme Samuel.</p> <p>Last week Mr Samuel had said: &#8220The ACCC has not yet formed a view in relation to the proposed variation and will make its decision following market inquiries.</p> <p>&#8220In particular, if market inquiries do not raise any issues of concern to the ACCC in relation to Toll’s obligation to divest a 50% interest in Pacific National, the ACCC would look favourably on such a waiver."</p> <br />