The ACCC has raised its concerns about the proposed acquisition of the Sydney WestConnex project by a consortium led by Transurban Group (ASX: TCL).
The ACCC's primary concern is that Transurban is already a dominant toll road operator and if it acquired WestConnex, this could lessen competition and possibly lead to higher tolls for consumers.
Supporting its concerns, the ACCC noted that Transurban controls 15 of the 19 road toll concessions in Australia and 7 of the 9 concessions in New South Wales.
Transurban shares were down 2.25% following the announcement.
Foolish Takeaway
Whether the ACCC approves the acquisition or not, Transurban already has a virtual monopoly much like other infrastructure operators such as Auckland International Airport Limited (ASX: AIA). It's no wonder that long term investors looking to preserve their capital such as Australian Super, the Canada Pension Plan Investment Board and the Abu Dhabi Investment Authority have all chosen to partner with them.
