A PYMNTS Company

Australia: Regulator deals blow to $6.5 billion Asciano bid

By  |  May 26, 2016

Australia’s antitrust watchdog on Thursday raised fresh concerns about a planned $6.5 billion takeover of rail and port giant Asciano, potentially forcing the Canadian-led buyout consortium to restructure the deal.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The Australian Competition and Consumer Commission had been due to give a final decision but instead warned the deal may give Asciano’s new owners too much control of the freight chain, and said it needed two more months to consult with industry players before it could make a ruling.

    The buyout group – led by Canada’s Brookfield Asset Management and including companies from China, the Middle East and Australia – may have to appease the regulator by offering to sell some assets, Lonsec Stockbroking general manager equities and research Bill Keenan said.

    “It’s going to need some more adjustment to get it through,” he said.

    Brookfield agreed to modify its initial solitary bid for Asciano in January after the regulator expressed concern that it would have freight trains and tracks in Western Australia state.

    Full Content: Reuters

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.