Macquarie and PGGM to Sell Coal Transporter to Aurizon Holdings
Posted on 10/22/2021
Aurizon Holdings Ltd, formerly QR National, inked a deal to acquire One Rail Australia (ORA) for A$ 2.35 billion. Aurizon is Australia’s largest rail freight operator. One Rail Australia comprises bulk rail haulage and general freight assets in South Australia (SA) and the Northern Territory (NT); the 2,200km Tarcoola-to-Darwin railway line; and a haulage business in New South Wales (NSW) and Queensland (Qld). One Rail Bulk is an integrated rail business in central Australia. East Coast Rail provides coal haulage in Hunter Valley and Central Queensland.
Aurizon will divest ORA’s NSW and Qld business (“East Coast Rail or ECR”) through a demerger or a trade sale, whichever creates greater value for Aurizon shareholders.
The seller is Macquarie Asset Management on behalf of its managed funds and PGGM. Macquarie Asset Management owned One Rail after five years of ownership and investment into the business. Since 2016, Macquarie and PGGM had owned One Rail, formerly known as Genesee & Wyoming Australia. Funds managed by Macquarie Infrastructure & Real Assets and PGGM acquired a 49% equity stake in Genesee & Wyoming Australia in 2016. In 2019, Macquarie and PGGM bought the rest of Genesee & Wyoming Australia.
The transaction is subject to certain customary conditions including regulatory and consent approvals.