SYDNEY, July 21 (Xinhua) -- Australia's competition regulator has approved a 9.1 billion-Australian dollar takeover of infrastructure giant Asciano Ltd by a consortium of local and foreign investors, clearing a major hurdle before the Foreign Investment Review Board makes its decision.
The Australian Consumer and Competition Commission (ACCC) had been concerned the takeover by Australian giant Qube and Canada's Brookfield Asset Management Inc. may give the local preferential access and lessen competition in freight handling.
But after raising objects in May, the parties restructured the deal so that Qube's half-owned Australian Container Freight Services (ACFS) would no longer be vertically aligned with the Asciano's Patrick port's business.
"After careful consideration, the ACCC has concluded there is not likely to be a substantial lessening of competition in any market," ACCC chair Rod Simms said in a statement on Thursday.
"It means that the effect of the proposed acquisition is a substitution of Qube for ACFS as the downstream container logistics provider linked to Patrick."
ACCC's approval is a relief to Asciano shareholders who have been dragged though a year-long heated takeover battle between Brookfield and Qube's offshore consortium, but eventually came together to make a joint bid.
The deal however must still be approved by Australia's Foreign Investment Review Board (FIRB), and thus Australian Treasurer Scott Morrison.
The newly elected government has been under pressure to restrict foreign ownership of key infrastructure assets by a vocal protectionist bloc in the upper house, votes they will need to push their reform agenda through parliament.
Asciano's shares were 1.00 percent higher at 9.13 Australian dollars (6.84 U.S. dollars) on Thursday, while Qube's shares rallied 2.97 percent to 2.43 Australian dollars (1.82 U.S. dollars) on the news.
