ACCC Green Light for Abigroup

Date: 03 December 2003

The Australian Workers' Union has today said that higher taxes and increased road tolls will result from the ACCC's decision to allow the proposed acquisition of Abigroup Limited by Bilfinger Berger AG (owner of Baulderstone Hornibrook).

AWU National Secretary Bill Shorten wrote to the ACCC in early November with a comprehensive submission outlining his concerns in relation to the merger of the two construction industry giants.

The ACCC today announced that it will allow the merger to go ahead despite the AWU's concerns that following the merger the conglomerate would hold 35-45% share of the large scale non-building construction services market, and 40-55% of the large scale road and bridge construction services market (tunnels, bridges & freeways).

AWU National Secretary Bill Shorten said the ACCC's decision sends a bad message to the big end of town.

"There was strong evidence that this acquisition would create a duopoly in large scale civil construction in Australia, and that as a result consumers, and in particular taxpayers, could be exploited. Graeme Samuel's decision will mean higher taxes and road tolls to pay for government sponsored infrastructure. This is disappointing decision from the man meant to protect the interests of consumers," Mr. Shorten said.

"In the interests of greater transparency the ACCC should publish comprehensive reasons for its decisions in relation to all mergers it considers under its informal clearance process. While it has recently decided to publish reasons where it decides to oppose mergers, additional scrutiny, including written reasons, should be given to the mergers the ACCC decides not to oppose."

For further information

Contact:	Paul Howes
Union:	The Australian Workers' Union
Phone:	03 8327 0888
Fax:	03 8327 0899
Email:	media@awu.net.au
WWW:	http://www.awu.net.au

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