The Australian Competition and Consumer Commission has resumed its review of DP World Australia's proposed acquisition of Silk Logistics, setting a new decision deadline that extends beyond key transaction milestones.
- ACCC restarts review with new decision date of 10 July 2025
- Scheme Meeting scheduled for 20 June 2025 now precedes ACCC decision
- Scheme Implementation Deed’s End Date set for 30 June 2025
- No termination notices issued by either party yet
- Silk and DP World Australia discussing next steps amid timeline uncertainty
Regulatory Review Resumes
Silk Logistics Holdings Limited has announced that the Australian Competition and Consumer Commission (ACCC) has resumed its review of the proposed acquisition by DP World Australia Limited. This development follows a suspension of the review timeline earlier this year, and the ACCC has now set a new date to announce its findings: 10 July 2025.
Timeline Challenges Ahead
The revised ACCC decision date presents a timing challenge for Silk and DP World. The Scheme Meeting, where Silk shareholders are expected to vote on the acquisition, remains scheduled for 20 June 2025, nearly three weeks before the ACCC’s updated deadline. Additionally, the Scheme Implementation Deed (SID) sets an End Date of 30 June 2025, by which the transaction must be completed or extended.
Under the terms of the SID, either party can terminate the agreement if the scheme’s conditions are not met by the End Date. However, no termination notices have been issued by Silk or DP World, and both companies are currently in discussions to determine their next steps given the extended regulatory review.
Implications for Shareholders and Market
This extension introduces uncertainty for Silk shareholders who had anticipated a resolution by the end of June. The delay could affect the timing of any potential takeover and may influence shareholder sentiment as they await regulatory clearance. Market participants will be watching closely for any updates on whether the Scheme Meeting or End Date will be adjusted to align with the ACCC’s timeline.
Silk has committed to keeping the market informed of any material developments, signaling transparency amid the evolving situation. The outcome of the ACCC’s review will be critical in determining whether the acquisition proceeds as planned or faces further hurdles.
Bottom Line?
With the ACCC’s decision now trailing key deal dates, Silk and DP World face a delicate balancing act to keep the acquisition on track.
Questions in the middle?
- Will Silk and DP World agree to extend the Scheme Meeting or End Date to accommodate the ACCC’s timeline?
- What specific concerns does the ACCC have that led to the suspension and resumption of its review?
- How might this regulatory delay impact Silk’s share price and investor confidence in the near term?