Australian consumer watchdog ACCC (Australian Competition and Consumer Commission) has voiced concerns over DP World’s proposed acquisition of port-to-door logistics specialist Silk Logistics.
Silk operates 21 logistics hubs and 25 warehousing sites across five Australian states. The company is expected to become part of DP World Australia, which operates four container terminals and three container parks at Brisbane, Sydney, Melbourne and Fremantle as well as inland distribution centres and warehouses.
DP World Australia, on average, services approximately a third of the containers processed at the four ports.
The ACCC has outlined preliminary competition concerns, including that DP World’s ownership of a national container transport provider is likely to reduce competition and could lead to higher prices and reduced quality for Australian importers and exporters.
ACCC commissioner Philip Williams said the regulator is also looking into the potential for DP World to gain access to commercially sensitive information about Silk’s rivals through the acquisition.
The Dubai-based ports and logistics giant struck a deal to acquire Silk for about A$174.5m ($115.6m) or A$2.14 per share last November. The company’s board has unanimously recommended that its shareholders approve the acquisition.
The ACCC has invited interested parties to submit their views by March 27 and is likely to announce its findings in early June.
Energy News Beat