Asciano acquisition cleared by ACCC

Company News

by David Chau

The Australian Competition and Consumer Commission (ACCC) says it will not oppose the proposed acquisition of Asciano Ltd (ASX:AIO).

A consortium, comprising Qube Holdings Ltd, Brookfield Infrastructure Partners LP and various global investment funds, intends to acquire the Australian freight logistics company.

Among other things, the ACCC considered whether the vertical integration of the Patrick container terminal at Port Botany, with Qube’s NSW rail operations, would result in discrimination against Qube’s competitors and reduce competition.

ACCC chairman, Rod Sims, says the acquisition would not cause a price increase or quality reduction of regional rail container export services to Port Botany.

Asciano reported a net profit of $200.6 million at 31 December 2015.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.