SYDNEY, AUSTRALIA — Australian officials said on Oct. 7 that they will investigate potential issues from Qube Holdings’ recent acquisition of a bulk grain terminal at the Port of Newcastle in New South Wales, Reuters reported.
Qube announced on Sept. 8 that it would buy the terminal for A$90 million and completed the transaction by the of the month.
The Australian Competition and Consumer Commission (ACCC) said Qube did not provide enough time to review the deal since the transaction was completed within weeks of Qube announcing it.
“By choosing to proceed before the ACCC had a chance to conduct its review, Qube and the former owners of the Newcastle Agri Terminal are exposed to potential legal action by the ACCC,” said Rod Sims, chairman of the ACCC.
Market participants are concerned about the dominance Qube would have in the supply chain for delivery of bulk grain to the Port of Newcastle.
Qube said it was disappointed the ACCC had decided to continue with the investigation.