Tabcorp-Tatts merger decision deadline extended
The Australian Corporation Tribunal has extended the deadline to make a ruling on the long-awaited merger between rivals Tabcorp and Tatts.
A decision on the AUS$6.4bn merger was scheduled to be made by 13 June, but instead, the two parties’ investors may have to wait up to three more months for some clarity on the matter.
An agreement for the deal was reached back in October 2016, when Tabcorp said it would acquire Tatts Group in order to become more competitive, particularly in global markets. However, the proposed deal faces strong objections from rival domestic gaming companies.
In addition, the merger has been opposed by the Australian Competition and Consumer Commission (ACCC). The regulatory body said the merger was very likely to increase the market power of Tabcorp and even hurt competition in the region.
The two companies say the deal, which they hope to close this year, would make them strong enough to compete with international bookmakers.
In a statement to the stock exchange, Tabcorp said: “Tabcorp and Tatts are progressing the other government and regulatory approvals required for the transaction and working towards implementing the transaction in the third quarter 2017.”
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