The ACCC stays on track with release of statements of issues

The ACCC has sought more time to consider a coal rail deal, while clearing Graincorp’s grain storage facilities buy.

A coal train leaves Singleton.

The ACCC is concerned that if either Pacific National or Aurizon buys Glencore’s Hunter Valley rail assets it will lock up the region’s rail contracts.

Accordingly, it issued a statement of issues raising concerns that the proposed deals may substantially lessen competition.

Glencore had put its rail assets on the market as part of a cost cutting exercise hooping to raise around $600 million.

The rail service, which simply hauls coal from its mines in the region, is run by Genesee & Wyoming, which had expressed interest in buying the asset.

This is the ACCC’s preferred option but obviously the price on offer is not as strong as from the rival operators.

The Global Infrastructure Partners-controlled Pacific National operates around 50 per cent of the coal haulage in the region, while Aurizon has around a 25 per cent market share.

Some consider the two as being a cosy duopoly but the ACCC noted the main customers are the likes of BHP and Glencore who themselves have plenty of financial clout.

A final decision is due on December 16.

The regulator also, as expected, issued a statement of issues questioning News Corp’s purchase of APN’s regional newspapers in Queensland.

This decision is in contrast to its clearance of Seven West Media’s acquisition of News Corp’s Sunday newspaper in Perth which left Seven West as the key local provider.

A final decision in the APN case is due on December 1.

As expected, the ACCC cleared Graincorp’s acquisition of Cargill’s grain storage facilities in Gilgandra in NSW.