The Transurban Group (ASX: TCL) share price is having a tough day at the office on Thursday.
At the time of writing, the toll road operator's shares are down 2.5% to $14.14.
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Why is the Transurban share price falling?
There are a couple of reasons why the Transurban share price is in the red this afternoon.
The first is that its shares are trading ex-dividend for its partially franked 31.5 cents per share interim dividend today.
This dividend will be paid to eligible shareholders in just under a couple of months on 21 August.
What else?
Also potentially weighing on the Transurban share price today is news that the ACCC has concerns over its proposed acquisition of a majority interest in Horizon Roads. It is the operator of the EastLink toll road in Melbourne.
According to the release, the competition regulator has concerns about the impact on competition for future toll road concessions in Victoria.
ACCC Chair Gina Cass-Gottlieb said:
We are considering Transurban's advantages from already owning two toll road concessions in Melbourne, and the extent to which owning a majority interest in Horizon Roads will further advantage it when competing for future toll road projects.
We are also considering whether Transurban benefits from lower cost finance due to perceptions of its existing market position, and how this may further entrench its advantages over other competitors after the acquisition.
The ACCC also revealed that it has concerns that the acquisition could deter the emergence of a key rival to Transurban for future toll road concessions and suspects that another suitor would acquire Horizon Roads should it block the deal. It adds:
Without the transaction, Horizon Roads could provide an alternative toll road owner or operator with the opportunity to gain some of the capabilities and incumbency advantages held by Transurban. This includes Horizon Road's traffic modelling capabilities, which may be leveraged to bid competitively for future toll road projects in Victoria.
This appears to have many doubting that a deal will be approved. This could be a blow to its future earnings.
