Singapore Power, Babcock and Brown Limited - proposed acquisition of Alinta Ltd
Type of assessment
Informal Review
Reference
27058
Acquirer(s)
Babcock and Brown Limited Singapore Power
Target(s)
Alinta Ltd
Industry
Electricity and Gas
Summary
On 13 August 2007, the ACCC decided not to oppose the acquisition of Alinta Limited by a consortium comprising of Babcock & Brown Limited and Singapore Power International Pte Ltd (SPI), subject to two undertakings provided pursuant to s87B of the then Trade Practices Act 1974.
One undertaking was given by SPI and Babcock and Brown Infrastructure Limited (BBI) (BBI SPI Undertaking) and the other was given by BBI and Babcock and Brown Power (BBP) (BBI BBP Undertaking).
The BBI SPI Undertaking addressed the ACCC's competition concerns regarding the potential aggregation of interests in competing gas pipelines in NSW and WA as well as concerns regarding integration of electricity generation and retail assets with upstream gas pipeline interests in WA.
The BBI BBP Undertaking addressed the risk that BBI would use its position as operator of the Dampier to Bunbury Natural Gas Pipeline (DBNGP) to favour BBP which was a shipper of gas on the DBNGP and competitor to the other shippers in downstream markets. The ACCC considered that BBI and BBP were not functionally or economically independent from the Babcock and Brown Group.
On 29 March 2011 Alinta Energy (previously BBP and now Redbank Energy Limited) completed a corporate restructure and Redbank ceased to hold any interest in a Downstream Business (as defined in the BBI BBP Undertaking). Accordingly, the BBI BBP Undertaking has ceased.
The BBI SPI Undertaking is still on foot.
Outcome of assessment
Not opposed subject to undertakings
Total review days *
44
Commenced public review
13th June 2007
Date completed
13th August 2007
Public competition assessment
Public Competition Assessments 19th September 2007 D07+88144.pdf (119.2 KB)
Undertakings
Undertaking offered by Babcock & Brown Infrastructure Limited, Babcock & Brown Investor Services Limited acting in its capacity as trustee of the Babcock & Brown Infrastructure Trust, Babcock & Brown Power Limited and Babcock & Brown Power Services Limited in its capacity as trustee of the Babcock & Brown Power Trust (Undertaking ceased on 29 March 2011 in accordance with clause 22(b) of the Undertaking) 13th August 2007 D07+75183.pdf (1.0 MB)
Undertaking offered by Singapore Power International Pte Ltd, Babcock & Brown Infrastructure Limited and Babcock & Brown Investor Services Limited acting in its capacity as trustee of the Babcock & Brown Infrastructure Trust 13th August 2007 D07+75112.pdf (1.3 MB)
Other
Variation to undertaking accepted on 13 August 2007 from Babcock & Brown Infrastructure Trust, Babcock & Brown Power Limited and Babcock & Brown Power Services Limited in its capacity as trustee of the Babcock & Brown Power Trust. 13th September 2007 D08+22028.pdf (59.0 KB)
