By David Winning
SYDNEY–Transurban’s proposed acquisition of a majority stake in the owner of the EastLink toll road in Melbourne has run afoul of Australia’s competition regulator.
In a statement, the Australian Competition & Consumer Commission said it would oppose Transurban’s purchase of a majority interest in Horizon Roads on the grounds that it would be likely to substantially lessen competition for future toll road concessions in Victoria.
The ACCC said Horizon Roads is the only other private toll road operator in Australia. Transurban’s scale and in-house modelling gave it an advantage over rival bidders for toll roads, it added.
“The proposed acquisition would result in Transurban entrenching its position in Victoria, and prevent the entry of a rival operator which could compete closely for future toll road concessions in Victoria,” ACCC Chair Gina Cass-Gottlieb said. “Transurban would operate every single private-sector controlled toll road in Australia.”
Transurban first signaled a potential opportunity to acquire the majority stake in Horizon Roads in February when it noted some investors were reportedly considering a sale of their respective interests.
In May, Transurban said it had sought clearance from the ACCC through an informal process for a potential purchase of a majority stake in Horizon Roads.
Responding to the ACCC’s decision, Transurban said it was confident the proposed acquisition wouldn’t substantially lessen competition.
“Transurban is closely reviewing the decision and will consider all the options available to it,” the company said. “Transurban notes that the ACCC’s decision is the result of an informal merger clearance process and not a conclusive finding of law.”
Write to David Winning at [email protected]
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