APA divests pipeline for ACCC approval of HDF buy

The Australian Competition & Consumer Commission (“ACCC”) will not oppose the proposed acquisition by APA Group of Hastings Diversified Utilities Fund (“HDF”). The ACCC has accepted APA’s undertaking to divest the Moomba to Adelaide Pipeline System (“MAPS”). APA and HDF both own gas transmission pipelines; HDF currently owns the MAPS. 

The undertaking resolves the ACCC’s concerns with the acquisition’s effect on the supply of gas pipeline services in the Adelaide and Moomba regions. Market participants had expressed concerns about the transaction’s impact on transportation charges and competition for the construction of new pipelines in the region. However, after careful consideration, including close consultation with the relevant industry players, the ACCC formed the view that, while there were concerns, they did not amount to a substantial lessening of competition.

According to the press release, the undertaking addresses concerns with supply, not transportation charges or development of new pipelines.

Full content: The ACCC

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