Investing.com – The proposed A$13 billion acquisition of gas pipeline operator APA Group from a consortium, led by Hong Kong’s CK Infrastructure Holdings Ltd (HK:1038), was granted clearance from Australia’s competition watchdog on Wednesday.
The Australian Competition and Consumer Commission (ACCC) granted its approval after the CK Consortium pledged to sell off all APA’s pipeline assets in Western Australia, as previously, the ACCC expressed concerns over the acquisition giving the CK Group monopoly power on gas transmission and storage facilities in the west.
The deal still has to go through the Australian government’s Foreign Investment Review Board.
ACCC Chairman Rod Sims said the watchdog "concluded that, in the absence of the undertaking, the proposed acquisition was likely to substantially lessen competition.''
“The undertaking addresses these concerns and creates an opportunity for a new operator to acquire a valuable set of assets, together with the personnel needed to operate and manage the assets,” said Sims.