ACCC blocks Transurban bid for Melbourne's Eastlink

The news: The ACCC has opposed Transurban’s proposed acquisition of Melbourne’s Eastlink toll road, saying it will lessen competition in the sector.

The numbers: The competition regulator said it would oppose Transurban’s bid to acquire a controlling stake in Horizon Roads, the operator of the 39-kilometre EastLink freeway toll road in Melbourne, which was due to go to an auction.

The context: Transurban already owns Melbourne’s CityLink toll road, and will operate the new West Gate Tunnel toll road when it opens in 2024. It also operates most of Australia’s other toll roads except NSW’s state-owned Sydney Harbour Bridge and Tunnel. The ACCC said the transaction would likely substantially lessen competition for future toll road concessions in Victoria. In a separate statement, Transurban said it was disappointed with the ACCC’s decision and would explore all options.

What they said: “The proposed acquisition would result in Transurban entrenching its position in Victoria, and prevent the entry of a rival operator which could compete closely for future toll road concessions in Victoria. Transurban would operate every single private-sector controlled toll road in Australia,” ACCC Chair Gina Cass-Gottlieb said.