Australia: Asciano deal faces ACCC setback

The $9-billion battle for control of Asciano is likely to be delayed by another month with the Australian Consumer and Competition Commission expected to outline fresh concerns over elements of the joint takeover bid made by Qube, Brookfield Infrastructure and six international investment funds.

Asciano’s board has recommended that investors accept a takeover bid worth $9.28 a share that would split the port and rail group into three parts, with separate consortiums acquiring the company’s rail, ports and bulk and automotive ports services businesses.

However, the ACCC still harbours concerns about the merger and is tipped to release a statement of issues on Thursday primarily related to Qube’s position in the regional rail and container handling markets, according to sources.

Qube’s control over both trucking and train access at the ports remains contentious although the ACCC is thought to rate the issues as an “amber light” concern meaning the deal “may” substantially lessen competition.

Full Content: Sidney Morning Herald

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