Media Release: Graincorp, 15 November 2019
ACCC will not oppose proposed sale of Australian Bulk Liquid Terminals
GrainCorp Limited (“GrainCorp” or “the Company”) welcomes the decision of the Australian Competition and Consumer Commission (“ACCC”) that it will not oppose the proposed sale of GrainCorp’s Australian Bulk Liquid Terminals business to ANZ Terminals Pty Ltd (“ANZ Terminals”) (“Proposed Transaction”). The ACCC announced its decision earlier this morning – a copy of the ACCC’s media release is attached to this announcement.
The ACCC’s decision is subject to an undertaking from ANZ Terminals under which it has agreed to divest its terminal at Osborne, South Australia, and to seek ACCC clearance of any future land acquisition it proposes at Coode Island, Melbourne. The Proposed Transaction also excludes the business and assets of GrainCorp’s bulk liquid storage facility at Port Kembla, New South Wales (Port Kembla Terminal) to address potential competition concerns the ACCC had about port-side bulk liquid storage in NSW. As a result, GrainCorp will retain the Port Kembla Terminal and the purchase price payable by ANZ Terminals on completion of the Proposed Transaction (which GrainCorp previously advised was approximately $350 million) will be reduced by $18 million.
“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. 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. It will continue to be an important part of GrainCorp’s grain ports strategy to diversify into non-grain activities and is expected to continue to deliver positive EBITDA results.” GrainCorp CEO Mark Palmquist.
For more information visit the GrainCorp and ACCC media release here.