Logistics giant Aurizon has launched legal action that could put the brakes on a deal that would deliver a $2 billion regional railway operation to Macquarie Group fund and its Dutch pension fund partner.
Aurizon on Tuesday lodged a claim in the NSW Supreme Court alleging that a move by Genesee & Wyoming's (G&W) incoming owner, Brookfield Infrastructure Partners, to sell its Australian operations breaches contractual obligations from an earlier deal.
Brookfield has proposed selling its 51 per cent stake in G&W to Macquarie Infrastructure and Real Assets (MIRA) and Dutch pension fund manager PGGM.
MIRA and PGGM already hold 49 per cent of G&W's local business under a deal struck in 2016.
Aurizon claims its purchase of rail assets in Western Australia in 2006 from G&W came with an assurance it would get first right of refusal on any future divestments.
In a statement to the ASX, Aurizon said both the latest deal and the earlier 2016 transactions breached that undertaking to give a first right of refusal.
The assets at stake include a series of Hunter Valley coal lines as well as substantial freight lines through central Australia such as the Tarcoola-to-Darwin rail line.
"Aurizon has initiated proceedings to seek to preserve its rights under the [2006 agreement] including the right to pursue transactions which may result from the exercise of those rights or otherwise," the statement said.
G&W bought Glencore's Hunter Valley coal haulage operations in 2016 for $1.14 billion. At the time Aurizon signalled an interest in buying the assets which prompted scrutiny from the Australian Competition and Consumer Commission (ACCC).
Aurizon shares were trading at $5.88 at the market close on Tuesday up 1.38 per cent for the day.
Aurizon declined to comment further. Brookfield declined to comment.