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Wednesday, January 18, 2006

Freight group welcomes failure of Patrick takeover bid. 19/01/2006. ABC News Online

Freight group welcomes failure of Patrick takeover bid. 19/01/2006. ABC News Online

Tasmania's Freight Logistics Council says many businesses will be relieved transport company Toll failed in its bid to take over logistics company Patrick Corporation.

The Australian Competition and Consumer Commission (ACCC) rejected the $4 billion hostile bid out of concern transport costs would rise and competition would be significantly eroded.

One of its main concerns was the bid would have given Toll control of the Pacific National rail network, which runs Tasmania's rail freight services.

The chief executive of Tasmania's Freight Logistics Council, Jim McCormack, says the impact of the rejection will remain unclear until Toll announces its next move.

"I know for a fact that there were a lot Tasmanian businesses that were concerned about the situation if Toll were successful," he said.

"Having said that though, it remains to be seen what happens next before we can say it's good or bad for Tasmania."

Mr McCormack says the takeover would not have created new competition and access problems for Tasmania's rail system.

"Pacific National themselves already have a monopoly of the rail operation and whether its owned by two 50-50 partners or ... by one partner 100 per cent it really doesn't make any difference to that situation," he said.

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