The merger of the Australian companies has been approved by the Australian Competition Tribunal.
Australia.- Tabcorp and Tatts Group have received the green light to proceed with the merger that is set to create one US$8.12 billion entity. The news were revealed after the Australian Competition Tribunal (ACT) decided that the companies met all requirements.
ACT president Justice John Middleton said that the companies have the OK from the tribunal if Tabcorp sells its pokies monitoring business in Queensland called Odyssey Gaming. On its part, the company had already revealed that it would be selling the business to Australian Federal hotels if the ACT approved the merger, as ABC.net.au said. “As the public detriments identified by the ACCC and the interveners are unlikely to either arise or are not of significance, the tribunal is satisfied in all the circumstances that the proposed merger would result, or would be likely to result, in such a benefit to the public that the acquisition should be allowed to occur,” said Middleton.
The merged business are set to get the control of 90 percent of the Australian betting industry, as it will also generate US$3.8 billion in revenues. Paula Dwyer, Tabcorp’s chairwoman, said that the decision is expected to deliver significant value for both sets of shareholders and material benefits to other key stakeholders, including Australian racing industries, business partners, employees, customers and governments.
“The combination will bring together two great Australian businesses, well positioned to invest, innovate and compete in a global gambling entertainment marketplace.” she added. The decision is expected to be approved by both shareholders in August.
On the other hand, despite the Australian Competition and Consumer Commission (ACCC) telling the Australian Competition Tribunal earlier this month to reject the deal, as it considered that there wasn’t enough evidence to consider it to be in the public interest, the commission refused to make any comments on the approval yet.