AusRAIL, Market Sectors

Toll, Patrick, FCL await major decisions by Tuesday

<p>Next Tuesday, March 14, is shaping up to be another major day in the Toll Holdings&#47Patrick Corp bid saga. </p> <p>The Australian Competition and Consumer Commission is set to tell the Federal Court by then if it will accept the latest undertakings from Toll on its bid for Patrick. </p> <p>Toll offered to unload a potentially $1bn-plus half stake in Pacific National to keep the rail operator a joint venture, and to spill all its train paths on the east-west rail route for reallocation, creating access for new or expanded competition. </p> <p>However, Toll has not offered any undertakings on the crucial issue of vertical integration in logistics, which the ACCC wants to see pursued by two competing players.</p> <p>The ACCC is also expected to tell Patrick by Tuesday whether it will approve its previously rejected application to take over rail forwarder FCL Interstate Transport Services. </p> <p>Patrick wants to use FCL to act as the core of a new rail operation filling whatever space Patrick can buy from Pacific National or pick from its remains. Patrick took the FCL deal back to the ACCC saying that the Pacific National joint venture has now gone beyond repair and the original objection of potential collusion was no longer valid. </p> <br />