First stab at acquisition by Australia’s South32 hits competition hurdle
Sydney — The first attempt at an acquisition by JSE-listed South32 following its spin-off from BHP Billiton has raised competition concerns over control of the local coking coal market. On Thursday, Australia’s chief competition regulator said it was concerned that South32’s proposed $200m acquisition of Peabody Energy’s Metropolitan mine in Australia could curb competition in its supply in the domestic market. The acquisition would also include a 16.67% stake in a nearby coal terminal. BlueScope, Australia’s biggest steel producer, told Reuters it had made confidential submissions to the Australian Competition and Consumer Commission (ACCC) voicing concerns that South32’s purchase could lead to higher coal prices. "As a direct result of South32’s proposed acquisition of the Metropolitan colliery, BlueScope is concerned about the lessening of competition, which would likely have the effect of increasing coal prices for the majority of our coking coal requirements," BlueScope said in...
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