Tatts – Tabcorp merger to go ahead

In a company statement Friday Australian gambling giant Tabcorp advised that the Australian Competition Tribunal has for the second time given its authorisation for the merger with Tatts to take place.

Our readers will recall that the full Federal Court of Australia ordered the original Tribunal approval to be reviewed after opposition to the merger surfaced.

The Tabcorp statement notes that the Tribunal acknowledged that the merger is likely to result in substantial public benefits and that the detriments identified by other parties are unlikely to either arise or are not otherwise material.

“The Tribunal was satisfied in all the circumstances that the proposed Transaction would result or would be likely to result in such a benefit to the public that the acquisition should be allowed to occur,” the statement advises.

However there is one condition – Tabcorp must divest its Odyssey Gaming Services business in Queensland. The group has agreed to do this, and is to sell the asset to Australian National Hotels Pty Limited, a subsidiary of Federal Group.

The Tribunal will publish the reasons for its decision on 22 November 2017, and this will be followed by a scheme meeting at which Tatts shareholders will be asked to vote on the merger.

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