A PYMNTS Company

Aurizon To Buy One Rail Australia For $1.75B

By  |  October 24, 2021

On Friday, October 22, Aurizon announced that it would buy One Rail Australia for US$1.75 billion as it looks to diversify from coal and add bulk capacity, though the outlay and worries about the impact on earnings sent shares 7% lower, reported Reuters.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Aurizon, Australia’s largest rail freight operator, stated the deal would give it greater exposure to commodities, supporting its transition to greener energy.

    More than a third of Aurizon’s core earnings came from coal in fiscal 2021 and it transports more than 200 million tonnes of metallurgical and thermal coal a year, according to its website.

    “The One Rail acquisition delivers a step change for Aurizon Bulk as a new entrant in the South Australia and Northern Territory region, and supports the ongoing growth of non-coal revenue in the Aurizon portfolio,” CEO Andrew Harding said.

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.