The ACCC has decided it will not pursue enforcement action in relation to
However, the ACCC remains concerned with potential impacts on the supply chain for bulk grain export through the
Qube completed its acquisition of NAT on
Under the Competition and Consumer Act, the ACCC can seek court-ordered divestiture of shares or assets acquired in breach of the merger provisions for a period of three years after completion of a transaction, and can seek penalty orders for a period of six years.
"While we have decided not to take court action at this time, it is extremely disappointing to see parties complete an acquisition such as this without allowing enough time for appropriate regulatory review," ACCC Commissioner
Qube is
"Based on our investigation, if Qube limits deliveries from rival rail services, it will likely lose volume and revenue from its terminal. Any benefit to Qube's rail haulage business would likely be outweighed by the volume and revenue that would shift from the NAT to
"Under current market conditions, we do not consider Qube is likely to have an incentive to discriminate against rival rail haulage services accessing the NAT and the transaction is therefore unlikely to substantially lessen competition. Feedback from market participants is that operations at the NAT have not changed since Qube's acquisition. However, we will continue to monitor the situation."
The ACCC also considered the likelihood of anti-competitive effects in other markets if, following the acquisition of NAT, Qube offered grain traders a bundled service combining any of its up-country wheat storage, rail haulage and terminal services at NAT.
"
"Based on current market conditions, our view at this stage is that it is unlikely that a Qube bundled offering would have an anti-competitive effect."
"However, the ACCC is conscious that market conditions can change quickly, and we will continue to keep a eye on any bundling and its effects,"
The ACCC also considered whether there may be competition lost between the
Market feedback suggests the
Notes to editors:
In considering the proposed acquisition, the ACCC applies the legal test set out in section 50 of the Competition and Consumer Act. In general terms, section 50 prohibits acquisitions that would have the effect, or be likely to have the effect, of substantially lessening competition in any market.
Background
The Qube group owns and operates up-country grain storage sites at Narromine and Coonamble, and supplies rail haulage in NSW. It also owns and operates the Quattro bulk grain terminal in Port Kembla, NSW.
Newcastle Agri Terminal is a bulk grain terminal at the
Grain is sold by farmers to grain traders, where it is received and stored in up-country storage sites around NSW. Grain is then transported by road and rail to port terminals to be stored on site for short period or loaded onto vessels for export.
Qube notified the ACCC on
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