Australia: Antitrust regulator clears two local bidders for $4 bln port sale

Australia’s competition regulator cleared the two domestic investors bidding for the country’s biggest general cargo terminal, Port of Melbourne, paving the way for a privatization the government hopes will raise $4 billion.

Australian Competition and Consumer Commission Chairman Rod Sims said on Thursday that after inquiries with stakeholders he “formed the view that neither acquisition would result in a substantial lessening of competition”.

The decision clears a significant hurdle for the state of Victoria to sell the port to either a consortium led by IFM Investors, the country’s biggest pension fund investor, or a consortium led by QIC Private Capital, the investment arm of the Queensland state government.

IFM is bidding with Macquarie Group’s Macquarie Infrastructure and Real Assets and Dutch pension fund manager APG Asset Management NV, while QIC is bidding with New York-based Global Infrastructure Partners and Canada’s Ontario Municipal Employees’ Retirement System.

Both lead investors needed antitrust clearance since they own port assets elsewhere in the country: IFM has major stakes in Sydney’s two ports plus Port of Brisbane city, while QIC also has a stake in Port of Brisbane.

Full Content: Reuters

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