The Australian Competition and Consumer Commission (ACCC) has approved Australia Post’s plans tobuy Qantas’ 50% stake in express operator StarTrack to expand its express and parcel business.
The postal operator already owns 50% of StarTrack and has been involved in the joint venturewith Qantas since 2003. As part of the deal announced last month, Australia Post will sell off its50% stake in cargo airline Australian air Express (AaE) to Qantas.
The ACCC stated that the acquisition was “unlikely to substantially lessen competition in themarket for the supply of express small package (up to 32 kg) delivery services in Australia. TheACCC considered that the competitors to the merged entity would continue to provide a strongcompetitive constraint post-acquisition for the supply of express small package delivery servicesin Australia.”
The agreement and the regulatory approval by the ACCC end the long-standing joint venturestructure for StarTrack and AaE making the postal operator the sole shareholder in Australia’sleading express freight and logistics provider.
In concrete terms, Australia Post will pay A$408 million (€325m) plus completion adjustments of$5 million for the 50% stake in StarTrack, which will give it full ownership of the company,combined with the disposal of its 50% stake in AaE, which will become a 100% Qantas subsidiary.
Australia Post Managing Director and CEO Ahmed Fahour welcomed the fact that ACCC didn’t opposeto the company’s acquisition plans. “The acquisition forms part of a $2 billion investment inAustralia Post’s national logistics and retail network and StarTrack is a key strategic investmentoffering significant express freight capabilities that complements our international and domesticparcels business. Together, Australia Post and StarTrack will offer a broad range of products toconsumers, small-and-medium enterprises and larger businesses.”
Australia Post said it wanted to divest its 50% interest in Australian air Express to Qantas asthis business is no longer considered a core investment for the company.
