The competitors regulator has raised considerations over Transurban’s proposed takeover of the operator of Melbourne’s EastLink toll highway.
The Sydney-based firm, which already operates Melbourne’s CityLink toll highway and can function the under-construction West Gate Tunnel, is in search of to accumulate Horizon Roads, which has a concession over the EastLink freeway till 2043.
The Australian Competition and Consumer Commission is worried the proposed acquisition might deter the emergence of a key rival to Transurban for future toll concessions.
“Without the transaction, Horizon Roads could provide an alternative toll road owner or operator with the opportunity to gain some of the capabilities and incumbency advantages held by Transurban,” ACCC chair Gina Cass-Gottlieb stated in an announcement on Thursday.
“This includes Horizon Roads’ traffic modelling capabilities, which may be leveraged to bid competitively for future toll road projects in Victoria.”
Given Transurban already owns a good portion of Melbourne’s toll highway concessions, there are considerations gaining possession of EastLink will additional benefit it when competing for future initiatives.
The potential of the Victorian authorities to constrain Transurban and promote competitors for future toll highway contracts will come below the microscope of the ACCC’s assessment.
The regulator can also be analyzing the impression of the takeover on the provision of digital tolling companies to motorists, the provision of tolling programs to toll highway operators, and competitors between EastLink and CityLink.
As properly as its Melbourne property, Transurban operates eight Sydney toll roads, eight Queensland property and three in North America.
A spokesperson for Transurban stated the corporate would proceed to proactively interact with the ACCC.
“We are of the view that there would be no substantial lessening of competition from the potential acquisition,” the spokesperson said.
The ACCC will settle for public submissions to its assessment into the acquisition till July 14.
Source: www.perthnow.com.au
