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.
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.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
You can follow Kevin on Twitter @KevinGandiya.
The Motley Fool Australia owns shares of and has recommended Transurban Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
- Warren Buffett is buying banks – should you too? – November 16, 2018 10:34am
- Telstra CFO to replace Elon Musk as Chair on Tesla Board – November 9, 2018 11:08am
- 5 ASX shares that I think are your best bet on Melbourne Cup Day – November 6, 2018 7:00am