The competition regulator says it won’t stand in the way of GrainCorp selling six of its seven Australian bulk liquid terminals business to ANZ Terminals.
The Australian Competition and Consumer Commission said its decision follows an undertaking by ANZ Terminals to divest its Osborne facility in South Australia and the exclusion of GrainCorp’s bulk liquid facility at Port Kembla, NSW, from the deal.
As a result of the Port Kembla facility being excluded from the deal the price of the transaction has been reduced from $350 million to $332 million.
“We are pleased with the outcome of the ACCC review,” GrainCorp chief executive Mark Palmquist said in a statement to the ASX, a day after the company posted a full-year underlying loss of $82 million.
He called the Port Kembla terminal a unique asset, “in that it is the only bulk liquid terminal which is co-located in one of GrainCorp’s core grain terminals and operated by Grains terminal staff”.
The six terminals that ANZ Terminals are acquiring are in Pinkenba, Queensland; Coode Island and Laverton North in Victoria; Fremantle, WA; Largs Bay, SA; and Devonport, Tasmania.
Helios Investments-owned ANZ Terminals said it was expected the transaction to be completed by the end of the year.
Chief executive Nick Moen said the combination of the two businesses would be an exciting opportunity for employees and customers.
The transaction will diversify ANZ Terminals’ customer base by adding significant storage in edibles and tallow, as well as open up new locations for the business in Western Australia and Tasmania.