Patrick takeover cuts Toll in two

Toll Holdings has been given approval by the Australian Competition and Consumer Commission to restructure its assets,after concerns were expressed that the group would have too much market power unless its logistics and infrastructure assets were ring-fenced.

Hence a “clean break”was made with new company, Asciano, being given control of Patrick and rail operator Pacific National and control of assets worth more than A$8bn ($6.8bn).

Asciano is to be listed on the Australian stock exchange and is expected to venture into overseas markets. It has already indicated that it has identified a number of international targets,earmarking North America as its main area of expansion.

Meanwhile, parent Toll Holdings has signed a five-year A$225m ($190.9m) integrated logistics services contract with Australian plastics manufacturer, Qenos. The contract will begin in June 2008 and involves the storage, packaging and distribution of 400,000 tonnes a year of polyethylene product from Qenos’s facilities in Victoria and New South Wales to its national customer base.

Distribution will be by containers and pallets transported by road, rail and sea, with local distribution requiring specialised purpose-built tipping trailers.

Toll will invest A$8.5m ($7.2m) in new specialised containers and handling equipment dedicated to the Qenos account.