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Wednesday, October 14, 2015

Australian regulator sees antitrust concerns on Brookfield Asciano buyout, (NYSE: BAM)

An Australian regulator has raised antitrust concerns over a proposed $6.5 billion takeover by Canada's Brookfield Asset Management of local freight firm Asciano Ltd, delaying the country's biggest inbound M&A deal in four years.In a statement on Thursday, the Australian Competition and Consumer Commission said the deal, the biggest ever purchase of a domestic firm by a Canadian entity, would give Brookfield both the rail network and train operations in certain locations. "The ACCC is concerned that the vertical integration will lead to a substantial lessening of competition in related markets for the supply of above rail haulage services in (Western Australia) and Queensland," commission chairman Rod Sims said, referring to coal haulage networks in two of the country's eight states.Although the regulator made no mention of blocking the deal in its entirety, it said it will now give a final ruling by Dec. 17, likely forcing the Canadian suitor to give some legally-binding undertakings and killing the target's hopes of having the sale completed by the end of the year.

Brookfield Asset Management Inc. (Brookfield) is a global alternative asset manager. Shares of BAM traded higher by 0.57% or $0.19/share to $33.37. In the past year, the shares have traded as low as $28.40 and as high as $39.00. On average, 1588790 shares of BAM exchange hands on a given day and today's volume is recorded at 831120.