(Reuters) - Australia's competition regulator on Thursday raised initial concerns about the effects on inter-toll road competition from a Transurban Group-led consortium's <TCL.AX> proposed 51 percent stake purchase in WestConnex motorway.
The Australian Competition and Consumer Commission (ACCC) published a statement of issues outlining preliminary views on the likely impact of the proposed acquisition, and said its final decision was scheduled for July 19.
“We are concerned that the proposed acquisition may cement Transurban’s advantages when competing for future toll roads,” ACCC Chairman Rod Sims said in the statement.
WestConnex's potential purchase by an alternative bidder would boost competition by creating two major Sydney toll road operators who would likely vie for government approval for unsolicited road proposals, he added.
Transurban's shares fell 2.5 percent to their lowest level since April 24 in morning trade, while the broader market was down 0.2 percent.
The company said in a statement it was assisting the ACCC with its ongoing review.
(Reporting by Nicole Pinto in Bengaluru; Editing by Stephen Coates)
