WASHINGTON: Both IFM Investors and QIC have been given the green light to progress respective consortium bids to acquire the 50-year lease of the Port of Melbourne. The Australian Competition and Consumer Commission (ACCC) said it will not oppose the two separate proposals after carefully considering potential cross-ownership interests and vertical relationships.
IFM Investors is proposing to acquire a 50% to 55% interest in the port, combined with Dutch pension fund manager APG (25-30%), and Macquarie’s infrastructure and real assets division (20%). The QIC consortium sees its private capital division looking to acquire 40%, combined with GIM Advisory Services (40%), and Borealis Infrastructure Management acting on behalf of the Ontario Municipal Employees’ Retirement System (20%).
The ACCC’s review of both consortium proposals focused on cross-ownership interests in the Port of Melbourne, NSW Ports, and the Port of Brisbane, and vertical relationships with port services providers operating at the Port of Melbourne. ACCC chairman Rod Sims said the commission has formed a view that neither acquisition would result in a substantial lessening of competition.
“The ACCC identified several constraints on the consortium members’ ability to discriminate in favour of downstream port services providers or to share commercially sensitive information regarding rivals of these providers,” Sims said. “Further, no single consortium member will control the port, or has a controlling stake in other ports or vertically related businesses. The existence of other significant shareholders in each business limits any potential competitive detriment.”
