Australian Stock Markets
The Australian Competition Tribunal has allowed the $11 billion merger
between Tabcorp and Tatts Group to proceed — subject to only one
condition.
That condition requires Tabcorp to sell its Odyssey Gaming business in Queensland. This is the second time the tribunal has given the greenlight for the merger.
Back in June, the tribunal approved this deal. However, CrownBet and the Australian Competition and Consumer Commission (ACCC) lodged an appeal to the Federal Court.
CrownBet argued the deal was bad for punters and against the public interest, while the ACCC contended the tribunal was wrong to conclude the merger would not cause a substantial lessening of competition. The court subsequently quashed the initial approval in September, and referred the matter back to the tribunal's president Justice John Middleton for further examination.
Justice Middleton today released a brief summary of his upcoming decision.
The judge's summary noted that the tribunal was satisfied "the proposed merger is likely to result in substantial public benefits" and that the detriments identified by the ACCC and the interveners are unlikely to either arise or are not otherwise material
The tribunal expects to publish the reasons for its decision on November 22.
Tabcorp entered a trading halt this morning, pending the tribunal's decision.
The company said it plans to resume normal trading on the ASX next Tuesday, or after it makes a market announcement about the merger — whichever comes first.
Tabcorp's shares last traded at $4.75 per share on Thursday.
That condition requires Tabcorp to sell its Odyssey Gaming business in Queensland. This is the second time the tribunal has given the greenlight for the merger.
Back in June, the tribunal approved this deal. However, CrownBet and the Australian Competition and Consumer Commission (ACCC) lodged an appeal to the Federal Court.
CrownBet argued the deal was bad for punters and against the public interest, while the ACCC contended the tribunal was wrong to conclude the merger would not cause a substantial lessening of competition. The court subsequently quashed the initial approval in September, and referred the matter back to the tribunal's president Justice John Middleton for further examination.
Justice Middleton today released a brief summary of his upcoming decision.
The judge's summary noted that the tribunal was satisfied "the proposed merger is likely to result in substantial public benefits" and that the detriments identified by the ACCC and the interveners are unlikely to either arise or are not otherwise material
The tribunal expects to publish the reasons for its decision on November 22.
Tabcorp entered a trading halt this morning, pending the tribunal's decision.
The company said it plans to resume normal trading on the ASX next Tuesday, or after it makes a market announcement about the merger — whichever comes first.
Tabcorp's shares last traded at $4.75 per share on Thursday.
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