Brookfield Infrastructure, based in Canada, and Qube, an Australian logistics group, announced on Feb. 23 they were considering joining their rival bids for the Australian-based rail company, Asciano Limited.
The discussions remained preliminary, indicative and non-binding and there was no agreement, arrangement or understanding between the parties at that time. Under the new proposal, Asciano shareholders would receive all cash consideration of A$9.28 ($6.71) per share for a transaction valued at A$9 billion ($6.5 billion).
This is the latest in the ongoing eight-month takeover battle for the Australian port and rail operator. Brookfield first approached Asciano in July 2015, offering A$9.05 per share in cash and stock. Qube made a rival bid in November 2015, offering A$9.25 per share.
For several months the acquisition was being reviewed by the Australian Competition and Consumer Commission (ACCC). On July 21 the ACCC announced that it would not oppose the proposed acquisition of Asciano Limited by a consortium comprising Qube Holdings Ltd., Brookfield Infrastructure Partners LP and a group of global investment funds.
The transaction is expected to close on Aug. 19.