Australia's competition regulator raises concerns over Qube's RoRo terminal deal (updated)

Qube Holdings

24/10/2024 24:05

(Updates with further details and background)
       Oct 24 (Reuters) - Qube's  QUB.AX  deal to buy
Melbourne's RoRo terminal has raised concerns, Australia's
competition watchdog said on Thursday, as it would potentially
gain further interest in a part of the automotive delivery
supply chain at the Port of Melbourne. 
    Australia's largest integrated terminal and freight
logistics provider, Qube, had in May said it would take over
Melbourne International RoRo & Auto Terminal in an A$332.5
million ($220.61 million) deal.
    The Australian Competition and Consumer Commission raised
concerns that the potential deal might have a significant impact
on competition in downstream services.
    "If this transaction goes ahead, Qube would be operating the
terminal while also being in active competition with other
automotive stevedores or pre-delivery inspection (PDI) services
providers," said the regulator's commissioner Philip Williams. 
    The ACCC added that Qube could raise the cost of access to
the Port of Melbourne for rival firms by restricting access to
the terminal, raising prices and lowering the quality of
terminal services. 
    Concerns were also raised Qube having access to rivals'
commercially sensitive information if it becomes the terminal
operator, the ACCC said. 
    Qube said in a statement to the ASX that its unit,
Australian Amalgamated Terminals (AAT), which is cracking the
deal to takeover RoRo, has previously operated the RoRo terminal
from 2002 until its lease expired in 2017. 
    "AAT operates all of its terminals subject to ACCC oversight
and has a strong history of compliance with the terms of the
undertaking that operates across all three terminals," Qube
said. 
    
    ($1 = 1.5072 Australian dollars)

 (Reporting by Shivangi Lahiri in Bengaluru; Editing by Alan
Barona)
 ((Shivangi.Lahiri@thomsonreuters.com))