Competition watchdog launches inquiry into CKI’s $13bn play for APA Group
The ACCC has begun an inquiry into CKI’s bid for APA, a key early test of whether the $13bn deal will proceed.
The competition regulator has formally started its inquiry into the proposed $13 billion bid by CK Inrastructure for APA Group which may determine whether the bid can proceed.
Typically the Foreign Investment Review Board (FIRB) waits for Australian Competition and Consumer Commission (ACCC) approval before making its ruling which means the ACCC holds an early key to the bid.
CKI has flagged asset sales, including the APA Goldfields pipeline in WA, but the combined company would still have a strong market position in the Victorian energy market, with three of the state’s five electricity distributors and two thirds of Victorian gas distribution.
The ACCC has also stated its concerns about the national market power held by APA (APA) which would be increased by adding CKI’s energy assets to the mix.
FIRB has previously approved Hong Kong based CKI’s bid for Duet, while ruling against its involvement with NSW grid privatisations last year.
In lunchtime trade, APA shares were down 3.95 per cent at $9.605 a share following yesterday’s $11-a-share CKI bid.
The ACCC is yet to post a timeline on the APA decision but it would be expected to run until August at the earliest.
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