ACCC rejects Aurizon’s proposed sale of Intermodal & Acacia Ridge | Finance News Network

ACCC rejects Aurizon’s proposed sale of Intermodal & Acacia Ridge

Company News

by Anna Napoli

The ACCC has rejected Aurizon’s proposed sale of Queensland Intermodal and the Acacia Ridge terminal.

Aurizon says it is disappointed with the watchdog’s decision which will negatively impact its commercial interests.

Total consideration for the two transactions is $225 million and Aurizon has already received a non-refundable payment of $35 million which it will retain.

The ACCC has instituted proceedings against Aurizon and its related entities for allegedly reaching an understanding in relation to its Intermodal business that could have the effect of lessening completion in the supply of international steel rail linehaul services.

The ACCC alleges that in July 2017 Pacific National and Aurizon reached an understanding that would lead to Aurizon exiting its Intermodal business through a combination of closure ans transactions with Pacific National.

ACCC Chairman Rod Sims says the effect of the understanding was that Aurizon would stop competing with Pacific National to supply Intermodal and steel rail linehaul services throughout Australia.

Currently, Pacific National and Aurizon are the only providers of Intermodal rail freight services within Queensland.

Shares in Aurizon (ASX:AZJ) are trading 2.40 per cent lower at $4.26.
 

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.