The Australian Competition & Consumer Commission (ACCC) released a statement of issues on Thursday, July 25, raising preliminary concerns about ANZ Terminals’ proposed acquisition of GrainCorp Liquid Terminals Australia.
ANZ Terminals and GrainCorp both provide port-side bulk liquid storage services in New South Wales, Victoria, and South Australia, where they compete to store liquids including edible oils, tallow, non-flammable industrial chemicals, and base oils for customers.
“Our preliminary view is that the acquisition will remove a significant competitor in what is an already concentrated industry in NSW, Victoria, and South Australia,” ACCC Chair Rod Sims said.
“In some locations, the acquisition will lead to ANZ Terminals becoming the only storage provider for some liquid products. This loss of competition could result in higher prices for customers, or lower levels of service,” Mr Sims said.
The ACCC considers that there is limited vacant land available for lease by new storage providers at the ports, creating a key barrier to entry for potential new competitors.
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