Toll will finalise its takeover of Concord Park on May 21 despite not yet having ACCC approval
By Brad Gardner | May 20, 2010
Transport and logistics giant Toll will finalise its takeover of Concord Park tomorrow.
Although the Australian Competition and Consumer Commission (ACCC) will not make its position on the takeover known until June 10, a statement from Toll says the acquisition process is expected to be finalised on May 21.
Concord Park, a privately owned interstate operator, will be integrated into Toll Express.
Boasting annual revenue of around $90 million, Concord Park runs distribution, linehaul, express and logistics services.
“The business combines full truck load and less than a truck load services and will be a valuable addition to the group following its integration into the Toll Express business,” Toll Managing Director Paul Little says.
“The integration of Concord Park will generate significant synergies with our existing businesses and we expect the acquisition to be EPS (earnings per share) positive in year one.”
A spokesman for the ACCC says Toll does not need to seek permission to finalise the deal before the competition regulator makes its views known.
“Merger parties may choose to advance with a merger without approval of the ACCC,” the spokesman says.
The ACCC may take legal action, including seeking an injunction, if it believes Toll’s takeover of Concord Park will lead to anti-competitive practices.
The ACCC conducted an informal review of the deal on May 6 and is seeking submissions from concerned parties.
A spokesman for Toll previously told ATN Concord Park’s services would “fit nicely with Toll’s existing businesses”.
“Concord Park offers distribution, third party logistics and transport services with branches located in all capitals,” he says.
“It operates Australia-wide including time-slot deliveries into distribution centres and bulk linehaul.”
Concord Park is owned by the Barrot Group of Companies, which also runs Concept Logistics, Concord Park Express, CP Haulage, Concord Park Metro, Barrot Logistics and Concord Park Linehaul.