ACCC blocks Transurban’s purchase of Melbourne’s Eastlink toll road – UPDATE

The second-busiest toll road in Australia could soon be under new management – but we now know it won’t be Transurban.

UPDATE, 23 September 2023: The Australian Competition and Consumer Commission (ACCC) has stopped the majority acquisition of Horizon Roads – the operator of Melbourne’s EastLink toll road – by Transurban Group, the government watchdog has announced.

Transurban operates Melbourne’s other toll-road network, better known as Citylink, as well as toll roads in other major cities.

According to the ACCC, it declined the proposal after “concluding that the transaction would be likely to substantially lessen competition for future toll road concessions in Victoria”.

Had the purchase gone through, Transurban would have been the operator of every single private toll road in the country.

“The ACCC received submissions expressing strong concerns from stakeholders. We also received a submission from the Victorian Government outlining its concerns. The ACCC placed some significance on the concerns expressed by the Victorian Government,” said ACCC Chair Gina Cass-Gottlieb in a written statement.

The original story continues unchanged below.

26 March 2023: A new report has revealed the operator of EastLink could soon have a new majority shareholder.

Bloomberg (via The Age) claims as much as 55.45 per cent of ConnectEast Group is being put forward in a stake sale by its parent company, in a deal that could be worth as much as $2.5 billion.

EastLink is the second-busiest tollway in the country, with around 250,000 users each day, and serving 40 per cent of Melbourne’s population.

According to the report, the deal could value Eastlink at $7 billion (including debt).

Horizon Roads Pty Ltd is believed to have put the majority stake of ConnectEast Group up for sale, with Transurban Group reportedly an interested party.

Transurban receives almost $2 million each day from tolls on Citylink – Melbourne’s other major tollway – with $722 million in revenue generated annually.

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