D-Day for ruling on Tabcorp merger

WAGERING heavyweight Tabcorp will learn today if its merger with Tatts to create an $11 billion company has been cleared by the competition tribunal.

Australian Competition Tribunal president John Middleton is expected to inform the companies of his decision on the case this morning.

Justice Middleton will deliver the ruling after reviewing three weeks of evidence and submissions about the merits and disadvantages of the merger.

Corporate bookmakers and Racing Victoria will be hoping any approval will be linked to conditions to appease their objections.

The Australian Competition and Consumer Commission has also objected to the deal.

Tabcorp decided in March to take a punt on regulatory approval for its Tatts tie-up, pulling out of an ACCC review to fight for clearance by appealing directly to the tribunal.

In its opening submission at the tribunal hearing, Tabcorp hit out at the ACCC’s view of the merger, saying the regulator had become “captive” to arguments it said were an “artificial construct” of its rivals.

The Australian-listed wagering company complained rivals were using the tribunal process to advance their own commercial interests.

Tabcorp’s submission also highlighted to the tribunal it operated in a competitive environment where corporate bookmakers had substantially increased their market share over the previous decade.

Shares in the group closed up 1.3 per cent yesterday at $4.63. Tatts shares fell 0.5 per cent yesterday to $4.17.