The national competition watchdog has supported Stockland’s $1.3 billion acquisition of a dozen Lendlease projects, including two in Perth, despite initial concerns.
The Australian Competition and Consumer Commission has supported Stockland’s $1.3 billion acquisition of a dozen Lendlease projects, including two in Perth, despite initial concerns.
The national competition watchdog today announced it would not oppose Stockland and Supalai’s takeover of 12 Lendlease residential community projects after accepting a court-enforceable undertaking.
Lendlease has 16 master-planned community projects across the country, including Alkimos Beach and Alkimos Vista developments in Western Australia.
Stockland must divest the Forest Reach master-planned community project in the Illawarra region of New South Wales, as part of the undertaking.
In July, the ACCC flagged concerns about the acquisition mainly the lack of competitors in the supply of residential master-planned community housing lots in four regions; the Illawara, north-west Perth, Ipswich and Moreton Bay.
To address the concerns, Stockland offered to divest its Forest Reach project near the Illawara.
“Stockland maintains that the proposed transaction will not lessen competition in any relevant market,” Stockland said in an ASX announcement.
“However, to progress transaction approvals Stockland has entered into an enforceable undertaking with the ACCC to divest its 100 per cent interest in the master-planned residential community development at Forest Reach in the Illawarra region.
“The transaction remains subject to FIRB and relevant landowner approvals.”
Completion is anticipated in second quarter of FY25, Lendlease announced.
The ACCC said it considered the proposed acquisition not likely to substantially lessen competition in any market, including north-west Perth, finding there were sufficient alternative developments available.
ACCC Commissioner Philip Williams said without the divestment, the proposed acquisition would merge two of the biggest master-planned community projects in the already concentrated Illawara market.
“This could have resulted in increased prices, delayed supply, or reduced quality of housing lots in the Illawarra region, to the detriment of prospective homeowners,” he said.
“The ACCC considers that the divestiture undertaking given by Stockland addresses the competition issues that would arise from Stockland owning both Forest Reach and having an interest in Lendlease’s nearby Calderwood Valley project as a result of the proposed acquisition.”
