Asciano buyout not a done deal
The Australian Competition and Consumer Commission (ACCC) has rejected a bid from Brookfield Asset Management for the port and rail firm Asciano.
This comes after Qube Holdings Limited announced that it had submitted a proposal to acquire all of the issued share capital Asciano that is now already owned by the consortium.
“After detailed consideration, the ACCC has concluded that the undertakings from Brookfield are not acceptable, and accordingly we will not be conducting third party consultations on the undertakings,” said Rod Sims, ACCC chairman.
The ACCC said it only consults proposed undertakings if it considers that the undertakings are capable of being enforced and have the potential to adequately address competition concerns arising from the acquisition.
It considered that the proposed undertakings offered by Canadian infrastructure giant Brookfield do not meet the criteria and it raised red light concerns that the firm would control too much of the freight supply chain.
According to a statement from Qube, its proposal would see Asciano shareholders receive consideration of A$9.25 (US$ 6.68) per share. This is 15c per share above the implied average value of the Brookfield offer.
The statement also says: “Asciano shareholders would not be exposed to the risks associated with Brookfield’s business and operations. The Brookfield proposal involves Asciano shareholders receiving relatively illiquid securities with a materially different risk profile, governance and management structure to their current investment in Asciano.”
Qube made the offer for Asciano in October and now look to be in the driving seat after the regulator’s rejection of Brookfield’s offer.
The ACCC is expected to announce its final decision on Thursday 17 December 2015.
