Application for Authorisation of Acquisition of Macquarie Generation by AGL Energy Limited [2014] ACompT 1

AUSTRALIAN COMPETITION TRIBUNAL

Application for Authorisation of Acquisition of Macquarie Generation by AGL Energy Limited [2014] ACompT 1 Citation: Application for Authorisation of Acquisition of Macquarie Generation by AGL Energy Limited [2014] ACompT 1

Applicant: AGL ENERGY LIMITED

File number: ACT 1 of 2014

Tribunal: MANSFIELD J, President MR G F LATTA, MEMBER PROF D K ROUND, MEMBER

Date of decision: 25 June 2014

Catchwords: AUTHORISATION – authorisation under s 95AT Competition and Consumer Act 2010 (Cth) of acquisition of shares in the capital of a body corporate or to acquire assets of another person BENEFIT TO THE PUBLIC – identification of potential public benefits – consideration of public benefits of proposed acquisition – review of claimed public benefits – weighing against public detriment MARKET DEFINITION – existence of anti-competitive effects on the relevant markets – no substantial lessening of competition in the electricity wholesale and retail markets in NSW – effect of the proposed acquisition on the market for hedge contracts – consideration of the Victorian and South Australian electricity wholesale and retail markets FUTURE WITH AND WITHOUT – robust and commercially realistic judgment – likely future if the proposed acquisition were to proceed – State's fiscal position will be improved by approximately $1 billion – proposed acquisition was the sole offer above the retention value of the assets – funds to facilitate implementation of infrastructure improvement in NSW – consideration of likely future in the absence of the proposed acquisition – State will likely continue to operate the assets in the short term to medium term – State will continue to seek to dispose of the assets in the future – future sale price likely to be less than current sale price – funds available to invest in infrastructure be reduced