Australia: ACCC not opposed to Glencore divestments

The Australian Competition and Consumer Commission will not oppose the proposed acquisitions of 40% and 9.99% of Glencore Agriculture Limited respectively by Canada Pension Plan Investment Board (CPPIB) and British Columbia Investment Management Corporation (bcIMC).

“The ACCC conducted inquiries with customers, suppliers, and competitors. Based on these, the ACCC is of the view that neither of the proposed acquisitions would be likely to substantially lessen competition in any market,” ACCC Chairman Rod Sims said.

“The ACCC does not consider that the acquisition gives Glencore Agriculture the incentive to use its position in the grain supply chain in South Australia to adversely affect Pacific National’s rivals. The nature of the minority interests and the fact that Pacific National does not provide grain rail haulage services in South Australia were important considerations. Furthermore, the incumbent rail company, Genesee & Wyoming, is the dominant provider of grain rail haulage in South Australia and owns most of the relevant below-rail network,” Mr Sims said.

Full Content: Australian Competition & Consumer Commission

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