US Company Genesee & Wyoming last week announced its plans to purchase all the assets of the rail Freight Operator. The Australian Competition Watchdog has asked GWI to comment on the proposed buyout.

GWI had last week said that railroad has high quality significance in the mining industry.

"We believe that the rail line will continue to be a catalyst for unlocking major new mining projects that were not economically feasible without it", the Company said.

The watchdog's demand for comment, seeks to know more about the competitors' access to railway and effect on prices after the acquisition. It has asked whether the buyout will be under the terms and conditions of section 50 of the Trade Practices Act. This act says that any acquisition which decreases the competition is prohibited.

The Australian Competition & Consumer Commission has started assessing this US bid for FreightLink. Main asset of FreightLink is 2244 km railway line; this line is between Tarcoola and Darwin in South Australia.

ACCC has also asked about the effect on firm's ability after the acquisition.

GWI has declared to acquire all assets of FreightLink, related entities from Korda Mentha and Asia Pacific Transport for $ 334 million.

A spokeswoman did not comment about the speculation of the rival Company to approach ACCC, regarding the GWI acquisition.