The Australian Competition and Consumer Commission will conduct an investigation into potential competition issues arising from Qube’s completed acquisition of the Newcastle Agri Terminal.
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As the investigation relates to a completed acquisition it will be conducted on an enforcement basis.
Qube notified the ACCC on 8 September 2021 and then completed the transaction on 30 September, despite requests from the ACCC to delay completion of the transaction after competition concerns were raised by market participants.
The ACCC was not provided with sufficient time or information to assess the competitive impact of the transaction. The potential competition concerns which have been raised relate to the vertically integrated position that Qube will now hold in the supply chain for delivery of bulk grain to the Port of Newcastle, and the potential for Qube to engage in anti-competitive bundling of storage, handling and transport with terminal services.
“Our investigation will focus on the impact of the acquisition on the supply chain for bulk grain export through the Port of Newcastle, and the ability and incentive for Qube to discriminate against rivals,†ACCC Chair Rod Sims said.
“It is worrying when a major vertically integrated player pays $90 million for key infrastructure used for the export of agricultural products without first obtaining the ACCC’s view on whether the proposed acquisition is likely to have the effect of substantially lessening competition.â€
“By choosing to proceed before the ACCC had a chance to conduct its review, Qube and the former owners of the Newcastle Agri Terminal are exposed to potential legal action by the ACCC,†Mr Sims said.
Qube Logistics (SB) Pty Ltd 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 Port of Newcastle. The terminal is one of two bulk grain terminals located at the Port of Newcastle servicing export grain from farms and storage in northern NSW. ■