ACCC ALLOWS ERM'S MACQUARIE BID

THE Australian Competition and Consumer Commission will not oppose ERM Power Limited’s (ASX:EPW) proposed acquisition of Macquarie Generation.

The ACCC says the bid for the New South Wales government-owned business and assets, including the Bayswater and Liddell power stations, wouldn’t lower competition in the market.

“The ACCC formed the view that an acquisition of Macquarie Generation by ERM was not likely to substantially reduce the competitiveness of generators or retailers or otherwise raise barriers to entry in the relevant electricity markets,” chairman Rod Sims says (pictured).

“Our review indicated that an ERM acquisition of Macquarie Generation is likely to ensure that competition is maintained and may potentially be enhanced in the relevant markets.

“A key factor in forming this view was the limited generation assets of ERM in Queensland and lack of existing generation assets in New South Wales, Victoria and South Australia,” he says.

EPW is trading at $2.59, a 0.38 per cent change.