Keolis and Downer EDI - proposed acquisition of Melbourne Train Franchise

Summary

Keolis SA and Downer EDI Limited propose to acquire the Melbourne Metropolitan Train franchise currently being offered by the Victorian Government. Downer EDI has interests in the manufacture and supply of rolling stock.

Market definition

Without reaching a concluded view, the ACCC considered that the market for public transport services in regions of metropolitan Melbourne, and a national market for the supply of rolling stock, were relevant to this matter.

Competition analysis

The ACCC considered that the acquisition of the Melbourne metropolitan train 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.