(Reuters) - Australia's competition regulator said the country's federal court has ordered rail operator Aurizon Holdings <AZJ.AX> to continue operating its Queensland state intermodal business, while the regulator's case against Pacific National and Aurizon is heard and determined.
The Australian Competition and Consumer Commission had sought a court injunction in July against rail operator Pacific National's proposed acquisition of Aurizon Holdings Ltd's Acacia Ridge Terminal and Queensland intermodal business.
The ACCC has alleged that the deal, along with the appointment of Pacific National to operate the Acacia Ridge Terminal, would likely result in "substantially lessening competition".
“It is part of the ACCC’s case that, at all times, Aurizon had alternatives to selling to Pacific National that would have been more competitive," ACCC Chair Rod Sims said.
In mid-March, Aurizon said it was committed to completing the freight business sale despite the ACCC's concerns, and would close the business if the deal did not go through, costing up to 350 jobs.
The deal would have been worth A$225 million ($166.6 million), as it was not completed within six months of the original announcement in August 2017.
Shares of Aurizon were trading 1 percent higher, compared with a 0.5 percent fall in the broader market <.AXJO>.
Aurizon wasn't immediately available for a comment.
(Reporting by Aditya Soni in Bengaluru; Editing by Michael Perry)
