The Transurban Group (ASX: TCL) share price fell 2.3% Thursday morning after the Australian Competition & Consumer Commission (ACCC) said that it was concerned about Transurban’s interest in Westconnex.
Transurban leads a consortium called the Sydney Transport Partners which is proposing to acquire a majority interest in the WestConnex project.
ACCC Chairman Rod Sims said the WestConnex project is so large that it represents an opportunity to establish a strong rival toll road operator. At the moment Transurban operates fifteen of nineteen toll roads in Australia and seven of nine existing roads in New South Wales.
Mr Sims said his line of thinking is that if WestConnex is acquired by an alternative bidder, there would be two major toll road operators in Sydney. Those two players would likely compete strongly for future toll road projects and vie for government approval for solicited road proposals.
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