Australia's Asciano accepts $6.3b Qube-led takeover bid

The consortium, which also features Global Infrastructure Partners, is offering A$7.04 in cash per Asciano share, in addition to one Qube share per Asciano share. Qube's shares were trading at A$2.04 in afternoon trading on February 16, raising the consortium's total offering price to A$9.08 per Asciano share. Asciano was trading at A$8.88.

Under the terms of the bid, Qube will assume control of Asciano's Patrick port business and get a 50% stake in Australian Amalgamated Terminals. The other consortium members will take over the Bulk and Automotive Port Services and receive a 50% stake in ACFS Port Logistics.

The deal appears to signal the end of Brookfield Asset Management's competing bid. Last year the group offered A$6.94 in cash plus 0.0387 Brookfield Infrastructure units for each Asciano share. Asciano will pay a break fee of A$88 million to Brookfield, according to a statement.

The Australian Competition and Consumer Commission (ACCC) had cast doubt on the Brookfield bid, citing concerns about reduced competition due to vertical integration in the Western Australia and Queensland rail haulage services markets. Qube's bid is still subject to approval by the ACCC, which may not make a final decision until late March.

Asciano was formed in 2006 from a restructuring of the assets of the Toll Group. It employs 8,000 people across Australia and New Zealand, and is Australia's only integrated rail, ports, stevedoring and landslide logistics business. For the year ended 30 June 2015, the company reported A$3.8 billion, down from A$4 billion the year before. Over the same period profits rose from A$495 million to A$585 million.

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• Topics
• Australasia
• Infrastructure
• Buyouts
• Australia
• Canada Pension Plan Investment Board (CPPIB)
• CIC
• Brookfield Asset Management
• buyout
• Infrastructure