Australian consortium pulls out of Queensland freight network takeover
Surprise for industry as $4 billion deal is abandoned
A consortium of Australia’s largest coal companies has dramatically walked away from its US$4 billion bid for Queensland Rail’s freight and coal business.
Queensland Coal Industry Rail Group (QCIRG) surprised industry watchers this week by announcing it was unable to satisfy its own, or the Queensland government’s, requirements for the bid.
The statement from the group of 11 companies, including Xstrata and Anglo American, did not expand on the conditions required.
In March, the state government announced plans to sell Queensland Rail’s freight, coal and infrastructure servicing businesses through a A$3-billion ($2.7 billion) initial public offering, retaining ownership of the passenger service business.
QCIRG made a A$4.85 billion offer to buy the network, arguing that a privatisation model was not in the best interests of the coal sector, as it could potentially limit investment in new rail capacity.
Last month, Australian newspapers reported that the consortium had increased its offer for the QR assets to A$5.1 billion.
QCIRG stressed that the coal rail system arrangements were “critical” for the industry, and added that it would seek to work constructively with the Queensland government on alternative arrangements to realise the system efficiently, and for future growth.
Queensland Treasurer Andrew Fraser said on the government’s website: “The government has maintained its preparations to float QR National. The state is confident of a successful float in the final quarter of the year.”
Queensland Coal Industry Rail Group (QCIRG) surprised industry watchers this week by announcing it was unable to satisfy its own, or the Queensland government’s, requirements for the bid.
The statement from the group of 11 companies, including Xstrata and Anglo American, did not expand on the conditions required.
In March, the state government announced plans to sell Queensland Rail’s freight, coal and infrastructure servicing businesses through a A$3-billion ($2.7 billion) initial public offering, retaining ownership of the passenger service business.
QCIRG made a A$4.85 billion offer to buy the network, arguing that a privatisation model was not in the best interests of the coal sector, as it could potentially limit investment in new rail capacity.
Last month, Australian newspapers reported that the consortium had increased its offer for the QR assets to A$5.1 billion.
QCIRG stressed that the coal rail system arrangements were “critical” for the industry, and added that it would seek to work constructively with the Queensland government on alternative arrangements to realise the system efficiently, and for future growth.
Queensland Treasurer Andrew Fraser said on the government’s website: “The government has maintained its preparations to float QR National. The state is confident of a successful float in the final quarter of the year.”
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