The Australian Competition and Consumer Commission today decided not to take action to prevent APT acquiring GasNet.
It did so on the basis that, in the event that the proposed Alinta AGL joint merger proposal schemes go ahead, the Australian Pipeline Trust proposed acquisition of GasNet is not likely to lead to a substantial lessening of competition in breach of section 50 of the Trade Practices Act 1974.
If the Alinta AGL joint merger proposal schemes proceed, AGL will no longer hold an interest in the Australian Pipeline Trust and as a result GasNet will remain as an independent Victorian gas transmission network without significant vertical links to Victorian and New South Wales gas retailers.
Given these unusual circumstances, the ACCC has determined that it will not oppose the acquisition at this stage given that it is expected that AGL will not hold an interest in APT beyond October 2006.
Further, market participants contacted have indicated that it is not likely that any competitive detriment will occur in the short period leading up to the proposed October completion of the Alinta AGL joint merger proposal schemes.
In the event that the Alinta AGL joint merger proposal schemes do not go ahead the ACCC has identified a number of serious competition issues in relation to the proposed transaction as identified in the ACCC's Statement of Issues which was published on 1 September 2006.
If events unfold such that the Alinta AGL joint merger proposal schemes do not go ahead, the ACCC will take appropriate action in relation to the GasNet acquisition.