APA deal hits snag

APA's bid for Hastings Diversified has hit further difficulties after Hastings announced a major new contract and remains under scrutiny by regulators. The deal is also being complicated by Australian Consumer and Competition Commission (ACCC) concerns about ownership concentration.

Hastings plans to spend $100 million on equipment to fulfil a 15‑year contract worth $400 million to compress gas for Santos, according to the article.

The article reports the contract will add an estimated '2? a share' to income per unit annually (as stated in the source).

The ACCC is scrutinising the APA bid because it is concerned about ownership concentration if the takeover proceeds, according to the article.

The Santos contract diversifies Hastings into an adjacent business field and, according to the article, places further pressure on APA’s unwelcome bid—making the takeover situation more complex.

The article mentions Hastings Diversified, APA (the bidder), Santos (the customer in the gas compression contract), and the Australian Consumer and Competition Commission (ACCC), which is reviewing the bid.

Per the article, it means Hastings is expanding its activities into a related area—specifically providing gas compression services under a long‑term contract with Santos—rather than its prior core activities alone.

Investors should watch developments in the ACCC’s review of APA’s bid, any updates on the execution or timing of the 15‑year Santos contract, and further announcements from APA and Hastings that could affect takeover prospects and company earnings.