ACCC Raises Concerns Over Aurizon’s Acquisition of Flinders Logistics

Australia, Finance

Article: The Australian Competition and Consumer Commission (ACCC) has raised preliminary competition concerns over Aurizon’s (ASX:AZJ) proposed acquisition of Flinders Logistics Pty Ltd, according to a Statement of Issues published today.

Aurizon, a national freight company, and Flinders Logistics, a stevedoring and logistics business, are set to merge, potentially impacting competition in the supply of rail haulage services for the import and export of containerised bulk minerals in South Australia.

The ACCC’s main concern is that the proposed acquisition would bring together a major rail freight operator with a key provider of stevedoring and port logistics services at Berth 29, a critical berth at Port Adelaide for importing and exporting certain mining products and mineral sands.

The ACCC fears that this could provide Aurizon with the ability and incentive to limit the access of competing rail haulage providers to Berth 29.

The proposed acquisition may also substantially lessen competition in the supply of stevedoring services for bulk commodities at Berth 29.

According to ACCC Commissioner Liza Carver, this situation could result in higher prices or lower quality services for bulk cargo customers, negatively impacting critical Australian industries.

Interested parties are invited to submit their responses to the Statement of Issues by 25 July 2024.

Source