Overview of Lendlease (ASX:LLC) acquisition and divestiture

Lendlease (ASX:LLC) has agreed to a divestiture undertaking for Stockland and Supalai's proposed acquisition of 12 Lendlease residential masterplanned community projects. The divestiture requirement involves Stockland relinquishing the Forest Reach masterplanned community project in the Illawarra region of New South Wales. The ACCC's decision not to oppose the acquisition was contingent upon this court-enforceable undertaking.

ACCC's rationale and assessment of the acquisition

The ACCC, represented by Commissioner Dr Philip Williams, expressed concerns regarding the potential concentration of masterplanned community projects in the Illawarra market if the acquisition proceeded without divestment. Dr Williams highlighted the risk of increased prices, delayed supply, or reduced quality of housing lots in the region. The ACCC's investigation revealed limited alternatives to constrain Stockland in the Illawarra, with prospective entrants facing challenges, including delays in essential infrastructure availability. To address these concerns, Stockland offered to divest its Forest Reach project, which the ACCC deemed sufficient to mitigate competition issues.

Summary of Lendlease (ASX:LLC) acquisition and outlook

Lendlease (ASX:LLC) has accepted a divestiture undertaking to facilitate Stockland and Supalai's acquisition of 12 Lendlease residential masterplanned community projects. The ACCC's approval, subject to the divestment, aims to prevent potential adverse effects on competition in the Illawarra market. The acquisition is unlikely to raise serious competition concerns in other areas, as per the ACCC's assessment. This decision aligns with the ACCC's commitment to maintaining competitive markets. Lendlease's outlook following the divestiture undertaking involves continued focus on its remaining masterplanned community projects and strategic developments across different regions.