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Australia: ACCC backs down from energy merger protest

By  |  July 24, 2014

The Australian Competition and Consumer Commission has decided to allow to proposed acquisition of Macquarie Generation assets from AGL Energy after initially blocking the deal, according to reports.

The ACCC had initially ruled that the $1.4 billion acquisition would reduce competition in the energy retail markets within New South Wales. Last month, however, that ruling was overturned on appeal byt eh Australian Competition Tribunal.

Now, the competition watchdog said, it will allow the Tribunal’s decision to stand without an appeal.

AGL Energy will acquire Macquarie’s coal-fired assets in a deal that would result in the nation’s three largest energy producers – AGL, Origin Energy and EnergyAustralia – controlling between 70 and 80 percent of the generation capacity in New South Wales, according to reports.

In a statement, ACCC Chairman Rod Sims said he was “disappointed” by the Tribunal’s final ruling on the matter.

Full content: Argus Media

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