SYDNEY, June 27 (Reuters) - Australian freight giant Asciano
Ltd AIO.AX on Monday said it has resolved a legal dispute with
a trucking subsidiary that had threatened to delay a A$9.1
billion ($6.8 billion) buyout led by Canada's Brookfield Asset
Management Inc BAMa.TO .
Asciano said it agreed to give its half stake in Sydney
trucking business Australian Container Freight Services Pty Ltd
(ACFS) to the family which owned the other half. It did not say
whether the transaction involved payment.
Asciano added in a statement that it would also hand over
some port leases to the joint venture.
The settlement will be a welcome respite for Asciano and the
global consortium of investors from Canada, Australia, China and
the Middle East which has been trying to buy it for more than a
year.
After a protracted bid war and some regulatory setbacks
delayed the takeover, the co-owners of ACFS last month asked the
Supreme Court of New South Wales to make Asciano confirm its
rights under the buyout plan.
The specifics of ACFS's concerns were not made clear, but
Asciano had said it would defend the action, raising the
prospect of yet another complication affecting the deal.
Asciano added on Monday that by handing its stake in the
trucking business to its joint venture partners, it would reduce
concerns by the competition regulator that the new company might
control too many elements of the supply chain.
"The degree of vertical integration following the
transaction would be comparable to the current extent of
vertical integration and, accordingly, competition concerns
would be less likely to arise," Asciano said in the statement.
($1 = 1.3463 Australian dollars)