Off the wire
• News Analysis: IS still on defensive despite coastal bombings in Syria  • Didi eyes bigger share of ODM market  • Chinese shares close higher Thursday  • News Analysis: G7 summit will yield little in efforts to address weakness of global economy  • Poll shows Putin's approval rating dipped, to 80 percent  • Tokyo shares close mixed with earlier gains offset by yen's appreciation  • Extra funding announced for cleaning up New Zealand's polluted waterways  • More possible MH370 debris to be examined in Australia: Aust'n official  • Indonesia approves death penalty, chemical castration for child rapists  • South China Sea issue should not be hyped up: Chinese defense minister  
You are here: 　 Home

Australian competition regulator flags concerns over port, rail takeover

Xinhua, May 26, 2016 Adjust font size:

Australia's competition regulator on Thursday raised fresh concerns of the proposed 9.1 billion-Australian-dollar (6.56 billion U.S. dollars) takeover of infrastructure giant Asciano Ltd by a consortium of local and foreign investors, extending its approval decision until mid-July.

The Australian Competition and Consumer Commission (ACCC) said the takeover by Australian giant Qube and Canada's Brookfield Asset Management Inc. may give the local preferential access to service contracts and "lessen the competition in stevedoring".

Asciano's Patrick ports business "may provide preferential access to Qube and (half-owned) ACFS (Australian Container Freight Services Pty Ltd) vehicles, and Qube regional export trains running into Port Botany, and raise rivals' costs," ACCC chairman Rod Simms said in a statement on Thursday.

"There are also concerns regarding foreclosure of rival stevedores" if the Patrick ports business gives favourable treatment to the consortium members, which then "may provide a superior service offering" to importers and exporters on condition that they use shipping lines calling at the Patrick container terminals.

"This may lessen competition in stevedoring," Simms said.

The two companies ended the bidding war in mid March, announcing the joint 9.1 billion Australian dollar (6.56 billion U.S. dollar) proposal which would see a joint ownership of the Patrick container terminals. Qube will take a 50 percent stake in the operation, with the remainder shared between Brookfield and its consortium partners including the Qatar Investment Authority.

The ACCC began the review at the end of March after Asciano signed off on the joint bid, and had been scheduled to deliver its final ruling on Thursday, however due to concerns raised by industry participants, it is inviting further submissions.

The final decision is now expected on July 21. Endit