The Australian Competition and Consumer Commission will not oppose the proposed acquisition by ERM Power Limited (ERM) of the NSW Government’s Macquarie Generation business and assets (Macquarie Generation) including the Bayswater and Liddell power stations.
“The ACCC concluded that the proposed acquisition is not likely to have the effect of substantially lessening competition in any relevant market,” ACCC Chairman Rod Sims said.
“The ACCC formed the view that an acquisition of Macquarie Generation by ERM was not likely to substantially reduce the competitiveness of generators or retailers or otherwise raise barriers to entry in the relevant electricity markets.”
The ACCC concluded that ERM’s limited existing generation assets and the relatively small size of its existing retail base would be likely to preserve competitive tension in relevant markets.
“Our review indicated that an ERM acquisition of Macquarie Generation is likely to ensure that competition is maintained and may potentially be enhanced in the relevant markets. A key factor in forming this view was the limited generation assets of ERM in Queensland and lack of existing generation assets in New South Wales, Victoria and South Australia,” Mr Sims said.
“An ERM acquisition of Macquarie Generation has the potential to enhance competition in generation and retailing of electricity,” Mr Sims said.
The ACCC’s decision will be available on the mergers register.