Major Australian merger is rescheduled
Major merger between Tabcorp and Tatts Group has been delayed until September.
Australia.- Authorities have delayed the deadline to discuss the potential merger between major Australian operators, Tabcorp and Tatts Group. Further debates have been rescheduled to September 10, when the Australian Competition Tribunal should decide whether to allow or reject the millionaire gaming merger.
“Tabcorp and Tatts are progressing the other government and regulatory approvals required for the transaction and working towards implementing the Transaction in third quarter 2017,” revealed Tabcorp in an Australian Stock Exchange document presented yesterday.
Although the companies expect a definitive approval this year, the debate could be further delayed, according to experts. The Australian Competition Tribunal was set to release a resolution last Tuesday, but authorities have postponed the deadline as they needed time to collect complete information about the project.
The US$8.12 billion Tabcorp-Tatts Merger could be allowed if it meets certain conditions that the competition is trying to impose. Tabcorp claims that nearly every racing jurisdiction, except for Victoria, has supported the Tabcorp-Tatts merger.
The major Australian gaming deal would see Tatts shareholders receive 0.8 Tabcorp shares and 42.5 cents for each of their own shares. Tabcorp shareholders would control 42 percent of the new gaming giant, while Tatts’ would get the other 58 percent.
