The Australian Competitors and Shopper Fee (ACCC) has raised issues over freight rail transport agency Aurizon’s proposed acquisition of One Rail Australia, saying that it poses sure dangers and complexities.
The regulator has highlighted what it calls ‘preliminary issues’ relating to the deal, and is assessing whether or not it may scale back competitors considerably.
Final yr in October, Aurizon agreed to purchase rail freight operator One Rail Australia for A$2.35bn ($1.75bn). Throughout the identical time, Aurizon additionally introduced the divestment of One Rail’s East Coast Rail through a demerger or commerce sale.
The watchdog is at present looking for public touch upon whether or not this disposal would resolve its issues.
Each Aurizon and One Rail ship rail haulage companies for coal in New South Wales (NSW) in addition to Queensland.
Pacific Nationwide, Aurizon, and One Rail are the main suppliers of coal haulage in these states.
Aurizon is alleged to be the most important coal haulage provider in Queensland moreover being the second largest in NSW.
ACCC Chair Gina Cass-Gottlieb mentioned: “By decreasing the variety of rivals within the provide of coal haulage in New South Wales and Queensland from three to 2 and eradicating an necessary competitor to Pacific Nationwide and Aurizon, we have now preliminary issues that the proposed acquisition of One Rail by Aurizon can be more likely to considerably reduce competitors.”
The regulator can also be evaluating whether or not the proposed acquisition would considerably decrease competitors in a number of regional markets for the supply of rail haulage companies for bulk commodities, along with coal.
At current, each the companies don’t compete within the provide of those companies. Nonetheless, Aurizon has unveiled its plan to proceed increasing its non-coal bulk commodity rail haulage operations.