The Australian Competition and Consumer Commission has expressed preliminary concerns over DP World Australia's proposed acquisition of Silk Logistics (ASX:SLH), citing potential impacts on competition in the container transport sector.
DP World Australia, a major container stevedore operating at key Australian ports, handles about a third of all container traffic.
Silk Logistics, one of the country's few national container transport providers, moves import and export containers to and from these ports via road transport.
The acquisition would integrate Silk's transport operations with DP World’s stevedoring services, raising competition-related issues.
"We have heard concerns that DP World’s ownership of a national container transport provider is likely to reduce competition in the supply of container transport services. This could lead to higher prices and reduced quality for Australian importers and exporters," ACCC Commissioner Dr Philip Williams said.
The ACCC's review focuses on whether DP World Australia could increase terminal fees or degrade service quality for rival transport providers post-acquisition.
It is also assessing whether DP World might engage in below-cost pricing strategies to attract importers and exporters.
The regulator is also evaluating whether DP World could leverage commercially sensitive data from Silk's competitors to its advantage, further weakening market competition.