“Consumers may not be familiar with these companies in name,however this acquisition is relevant to anyone buying or selling property,” ACCC deputy chair Mick Keogh said. Link owns 42.77 per cent of PEXA.
“We have significant preliminary concerns that this transaction would enable D&D and PEXA to engage in mutual preferential dealing that would hinder existing competition or raise barriers to entry in one or more markets in the conveyancing workflow,” Keogh said.
Link’s shares closed sharply lower,falling 10.4 per cent to $3.35,as investors fled over concerns Dye&Durham may pull its bid or lower its offer in the wake of the ACCC’s concerns.
Link’s takeover deal with Dye&Durham is already the final stages and regulatory clearance from the ACCC was a key hurdle the deal needed to clear. It’s the fourth takeover offer that Link has received in recent years. Other suitors,notably Private Equity Partners have been scared off by the threat of a class action in the UK.
“Consumers may not be familiar with these companies in name,however this acquisition is relevant to anyone buying or selling property.”
ACCC deputy chair Mick Keogh
On Monday,Link confirmed the long-awaited class action had now been filed in the United Kingdom on behalf of investors. The group said it would vigorously defend the claim brought against it by investors in a scandal-plague fund that has chalked up £1 billion ($1.75 billion) in investment losses.