Credit ratings could weigh in on the takeover battle for Asciano after Standard & Poor's on Friday said it could lower the long term rating of the Australian ports and rail operator if the Qube consortium is successful.
The ratings agency said it has placed Asciano's BBB corporate credit rating under review, following a rival bid by the consortium comprising of Qube Holdings, infrastructure investor Global Investment Partners, China Investment Corporation and Canada Pension Plan Investment Board fund.
"If the Qube bid is successful, the bidding consortium's proposed divestment of Asciano's ports business will reduce the company's business diversification and thus weaken Asciano's overall business risk profile," S&P said in a statement.
Asciano currently benefits from its strong position in both the rail and ports markets in Australia, S&P said.
The Qube consortium is locked in a takeover battle for Asciano with Canadian infrastructure giant Brookfield.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
Under its proposed $8.9 billion deal, Qube will only acquire Asciano's ports business, while the rail business will be taken over by its other three partners.
Asciano's remaining bulk, auto and ports services businesses (BAPS) will be sold to an entity to be established by GIP, CPPIB and CIC. Qube subsequently may seek to acquire some of the BAPS assets, subject to regulatory approval.
The complex arrangement follows earlier concerns raised by the ACCC over Brookfield's original takeover proposal, which it said could lead to reduced competition in rail haulage services in Western Australia and Queensland.
Brookfield last month gave a fresh undertaking to the ACCC, under which it has proposed divesting rail operator Pacific National's intermodal business to an independent party, and committed to independent operation and decision making at its Dalrymple Bay coal terminal in Queensland.
The competition watchdog is currently evaluating both rival offers, and is expected to make a decision by February 18.
Meanwhile, Brookfield on Friday extended its $9 billion takeover offer for Asciano for the third time.
The Canadian predator said its takeover offer is now scheduled to close on February 18, but did not specify any reasons.
