The Australian Competition and Consumer Commission (ACCC) has raised concerns over Canada’s Brookfield Infrastructure proposed bid to acquire Australia’s freight firm Asciano Ltd, postpoining its final decision until December.

If approved, the deal would be the largest purchase of an Australian firm by a Canadian organisation ever. The deal would also offer eight states from each of the countries to enjoy best railway services with improved train operations, the regulator said in a statement.

ACCC's doubts are to do with the potential for reduced competition in the railway freight industry if Brookfield starts favouring Asciano’s Pacific National rail haulage business across Australia.

“The ACCC is concerned that the vertical integration will lead to a substantial lessening of competition in related markets for the supply of above rail haulage services in (Western Australia) and Queensland,” ACCC Chairman Rod Sims said.

Sims also noted that there have been many similar mergers before which were approved by the commission, but that concerns about “vertical integration” are stronger in Brookfield's case.

Brookfield took the questions raised by the regulator sportingly and said it was willing to work on the highlighted issues. “We remain confident that all concerns identified by the commission can be fully addressed through a combination of the existing regulatory frameworks and commitments given by Brookfield, which would be consistent with previous ACCC clearances in similar circumstances,” the Canadian company said, reports The Sydney Morning Herald .

Asciano’s shares fell eight percent to AU$7.88 on Thursday -- its lowest in the last three months.

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