ACCC delays decision over Lendlease sale to Stockland, Supalai
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The news: The competition regulator has extended its review of Lendlease's proposed sale of 12 residential communities to property group Stockland Corporation and its capital partner Supalai Residential Communities Partnership.
The numbers: The Australian Competition and Consumer Commission (ACCC), which last month outlined preliminary concerns with the $1.3 billion deal, has delayed its decision from 12 September to 26 September.
The two-week extension to the ACCC's timetable is to allow the regulator to consider Stockland's proposed divestiture of its wholly owned masterplanned residential community development at Forest Reach in the Illawarra region of New South Wales, to address concerns regarding the Lendlease acquisition.
The context: Lendlease said it continues to support Stockland in its engagement with the ACCC to resolve the issues raised by the regulator, and enable the completion of the deal "as soon as possible".
The ACCC has not confirmed whether it will accept Stockland's proposal.
In July, the regulator said it was concerned the proposed acquisition would remove one of Stockland's closest and largest competitors in the supply of residential masterplanned community housing lots in regions including Illawarra.
The ACCC said it was concerned the deal might increase Stockland's incentive to raise the price, delay the supply, or reduce the quality of housing lots in these regions "to the detriment of prospective homeowners".
The sources: ASX announcement, ASX announcement
