Tabcorp and Tatts merger subject to regulatory approval

The Australian giants agreed to US$4.9 million merger that is subject to regulatory approvals.

Australia.- The Australian based gaming companies Tabcorp confirmed that they came to an agreement to acquire Tatts Group Ltd for US$4.9 billion, and after the merger the betting giant would have a total value of US$10 billion. If the merger receives full approval from the Australian Competition and Consumer Commission (ACCC), it could pose a significant challenge and have major implications for the betting industry in Australia.

If the merger gets the approval, the new enterprise would be the biggest gambling company in Australia and it would provide stiff competition to other betting companies, such as William Hill, Bet365 and Ladbrokes, which are currently targeting the Australian market. The confirmation was reflected in share prices as Tatts shares went up by 15 percent to US$2.8 and Tabcorp’s rose by 1.8 percent to US$3.5. Commission chairman Rod Sims said that they would need to determine if the other online betting operators would be competitive enough against the new entity.

Paula Dwyer, head of Tabcorp, said: “In wagering, combining our two complementary businesses will give us a national footprint and could create a pathway to larger wagering pools. This transaction is expected to deliver significant value for both sets of shareholders, and material benefits to other key stakeholders including the racing industry, business partners, customers and Governments.”

The merger would give the country’s racing industry an additional US$38 million annually and US$99 million of EBITDA business improvements and synergies in the first year.