The Australian Competition and Consumer Commission will not intervene in the Westfield Trust's takeover offer for units in the AMP Shopping Centre Trust, ACCC Chairman, Mr Graeme Samuel, said today.
"The ACCC decided that the acquisition would not be likely to substantially lessen competition", he said.
"A major factor in the ACCC's decision was that Westfield will only obtain management control of two of the nine regional shopping centres in which the AMP Trust has ownership interests - Mt Gravatt in Brisbane and Kotara in Newcastle.
"Of the remaining seven, in six centres other companies in the AMP group retain majority ownership interests despite the acquisition of the interests held by the AMP Trust.
"The seventh, Colonnades in Adelaide, will be 100 per cent acquired by Westfield but this interest will then be on-sold to the Centro Properties group. Contracts have been signed and will be executed once Westfield is appointed the 'Responsible Entity'. "Importantly, the AMP group still retains management control of six of the nine centres and the Centro group will acquire management control of the seventh. Westfield cannot acquire management control of the six AMP-controlled centres without the consent of the majority owners. It will have no ownership interests in Colonnades.
"Westfield has concurrently entered into contracts for the sale of two of its existing centres - Galleria in Perth and Toombul in Brisbane - to the Centro group.
"These sales will largely balance out the effects of acquiring the AMP Trust's interests in Booragoon in Perth and Mt Gravatt in Brisbane.
"Westfield does not currently control any shopping centre in the Newcastle metropolitan area and its acquisition of AMP Trust's 100 per cent interest in Kotara is considered pro-competitive.
"The only significant increase in market share would occur in Sydney, where Westfield will acquire a 25 per cent ownership interest in Warringah Mall and 50/50 ownership (with the AMP group) of Macquarie Shopping Centre - two of the largest centres in Sydney in terms of floor space.
"But Westfield has not acquired management control. It is management control - in this case, still with AMP - rather than centre ownership which is the most relevant factor".
Any change in ownership or management control of the shopping centres would be subject to further ACCC review.