The acquisition of Silk Logistics by DP World Australia is back under review by the Australian Competition and Consumer Commission (ACCC), following a temporary pause back in April.
The former date for announcement of the ACCC’s findings was set for June 5 2025, yet was delayed indefinitely due to the fact it was seeking further information from the merger parties.
DP World Australia initially announced its intention to acquire 100 per cent of the issued share capital of Silk Logistics Holdings Limited in November 2024, but potential competition concerns that could arise from the acquisition were immediately flagged by the ACCC.
The legal test which the ACCC applies in considering the proposed acquisition is in section 50 of the Competition and Consumer Act 2010, which prohibits acquisitions that are likely to have the effect of substantially lessening competition in a market.
The ACCC is considering to what extent the proposed combined company “would have the ability and incentive to favour its own port logistics services and limit rival suppliers” from providing competitive offerings, as well as the loss of competition at any level of the container supply chain.
A revised date has now been set by the ACCC, with an announcement of findings to be made on July 10 2025.
The ACCC’s decision date exceeds the June 30 end date agreed to by Silk and DP World in their scheme implementation deed, meaning either party could terminate the deal if they are unable to agree to an extension, although there is no public indication of this.
“Silk has not received any such notice from DP World Australia and has not issues any such notice,” a Silk Logistics statement reads.
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