Transdev TSL Pty Ltd - proposed acquisition of Melbourne Metropolitan Tram Franchise

Summary

Transdev TSL Pty Ltd has requested clearance from the ACCC in relation to its proposed acquisition of the Melbourne Metropolitan Tram Franchise.

Market definition

The ACCC considered the proposed acquisition in relation to the market for public transport services in metropolitan Melbourne.

Competition analysis

The ACCC considered that the acquisition of the Melbourne metropolitan tram franchise by a single operator was unlikely to substantially lessen competition, but noted that competition concerns may arise if one entity held interests in multiple franchises (e.g., train and tram). The ACCC also considered that the chosen franchisee would not have an ability to foreclose competition for the supply of rolling stock because the Victorian Government would retain responsibility for such procurement decisions under the franchise arrangements.