AXX: DP World's acquisition of Silk Logistics not opposed

• ACCC will not oppose DP World's proposed acquisition of Silk Logistics
• ACCC concluded acquisition would not substantially lessen competition
• DP World unlikely to engage in discriminatory conduct against Silk's rivals

The ACCC has announced it will not oppose DP World Australia Limited's proposed acquisition of Silk Logistics Holdings Limited (ASX:SLH). Following an extensive investigation, the ACCC concluded that the proposed acquisition would not likely result in a substantial lessening of competition. DP World Australia operates container stevedores at major Australian ports, while Silk is a national container logistics provider. The ACCC considered the integration of DP World's container terminals with Silk's transport and warehousing business, and the potential impact on container transport service providers. The ACCC analysis indicated that DP World Australia is unlikely to engage in discriminatory conduct that would lead to material operational delays and disruption at its terminals, as this would risk losing shipping lines to other terminals and damaging its own business. The ACCC has an ongoing role in monitoring Australia's container freight industry, including tracking prices, costs and profits of container terminals.