“The divestment of the Osborne facility and exclusion of the Port Kembla facility alleviate our competition concerns in New South Wales and South Australia, as the competitive structure in these markets will be maintained,” said ACCC commissioner Stephen Ridgeway.
GrainCorp welcomed the ACCC’s decision, which will allow the business to strengthen its balance sheet and sharpen its focus on demerging its malt business into a separate, ASX-listed business.
“We are pleased with the outcome of the ACCC review, which represents a significant step towards completing the sale of our Australian Bulk Liquid Terminals business,” said GrainCorp chief executive Mark Palmquist.
“In relation to the retention of the Port Kembla Terminal, this terminal is 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,” he said.
ANZ Terminals said it expected the transaction to be completed by the end of this calendar year.
“By bringing our two businesses together, we can enhance our ability to provide value-added solutions and flexibility for our customers across Australia while also capitalising on opportunities to grow our business further,” said Nick Moen, chief executive of ANZ Terminals.
Investors welcomed the news, boosting GrainCorp shares by 10.2 per cent to $8.52 in late trade.