The Australian Competition and Consumer Commission has accepted undertakings, pursuant to section 87B of the Trade Practices Act 1974, from GrainCorp Ltd in relation to the sale of the interest in Australian Bulk Alliance, ACCC Chairman, Mr Graeme Samuel, announced today.
On 23 May 2003, the ACCC announced that it had decided to not oppose the proposed merger of GrainCorp Ltd and Grainco Australia Ltd.
The ACCC's assessment was based on the parties' submission that Grainco would not retain its interest in ABA. ABA is a joint venture between Grainco and AusBulk Ltd which owns 10 grain storage and handling facilities in Victoria and NSW, and a 50 per cent interest in the Melbourne Grain Terminal (with the other 50 per cent interest held by AWB Ltd).
In the event that Grainco has not sold its interest in ABA prior to the completion of the merger, the ACCC has accepted undertakings offered by GrainCorp that it will dispose of Grainco's interest in these assets in a specified time period following the completion of the merger. This outcome will ensure the maintenance of competition in the provision of up-country grain storage and handling facilities, and in port terminals.
The undertakings provided by GrainCorp will shortly be available for inspection on the public register.