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

(Reuters) - Qube's 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)

Source: Investing.com