Proposal to purchase Geelong Port punted by asset manager and super fund

The Palisade Partners and Spirit Super consortium had attempted to buy the asset, Victoria's largest bulk port, for $1.2 billion.

But the Australian Competition and Consumer Competition flagged competition concerns over the deal, as the purchase would have meant Palisade had a 100 per cent interest in the Port of Portland and 49pc of Geelong.

The ACCC recently informed the consortium that it continued to hold preliminary competition concerns needing more time to investigate.

The consortium subsequently decided to not proceed with the transaction.

"We were concerned the common fund management and ownership interests between the Port of Geelong and the Port of Portland would reduce competition for customers between the ports over the medium to long term," ACCC chair Gina Cass-Gottlieb said. .

"Common fund management and ownership that allow a degree of control or influence by minority interests have the potential to detrimentally effect competition."

Combined, the two ports handle more than half of Victoria's bulk cargo, including grains and pulses.

Read more:

VFF Grains councillor Ryan Milgate, said it was pleasing the ACCC had listened to farmers' concerns.

The VFF had put in a submission to the ACCC.

"We saw that as an issue of potentially removing competition, which would come straight out of our pockets," Mr Milgate said.

"If you remove competition, and prices increase, that's literally straight out of our pockets."

He said the farmgate price for grain was driven by the export market, so removing competition from a port would have a direct impact on every tonne of grain sold.

"In our view that's one of the major reasons behind the ACCC's review," he said.

"We just want to see good competition to keep us competitive in an export world - we have enough challenges, as it is, around such things as labour and logistics."

Investment in the ports was fine, but having such a large percentage of ownership in the hands of one company would have been detrimental, he said.

"We couldn't stand there and let that happen, without putting a good case forward," Mr Milgate said.

Ms Cass-Gottlieb said parties proposing to acquire interests in critical infrastructure should expect the ACCC's review would be careful and thorough.

"Such transactions may have long-term consequences for competition," she said

"The ACCC conducts merger reviews with the rigour warranted by the complexity and significance of a transaction."