CROWNBET JOINS ACCC IN ACTION ON TATTS/TABCORP MERGER
ONLINE betting company CrownBet has joined the consumer watchdog to call for a judicial review of the Australian Competition Tribunal’s approval for the proposed mega-merger of Tabcorp and Tatts.
Tabcorp revealed yesterday that CrownBet, which is majority-owned by James Packer’s casino operator, Crown Resorts, had lodged an application for a judicial review. It follows the Australian Competition and Consumer Commission’s application to the Federal Court this week for a judicial review of the tribunal’s consent for the merger.
Announcing its review on Monday, the ACCC said it believed the tribunal had made errors in reaching its decision.
Tabcorp had already said it would oppose the ACCC’s application and that Tabcorp and Tatts remained committed to their proposed $11 billion merger. Tabcorp confirmed yesterday it would “also oppose the CrownBet application”.
The ACCC claims the tribunal made errors that are fundamental to the case and future merger assessments. Tabcorp initially sought informal merger clearance from the ACCC but, shortly after the watchdog published a statement of issues in March, withdrew the application and instead lodged an application for authorisation with the Australian Competition Tribunal.
Separately yesterday, an analyst at investment bank Citi said Crown Resorts and rival casino group The Star could save up to $100 million a year by merging. Running the rule over the value of a “hypothetical” tie-up, Citi analyst Rohan Sundram said he believed there was strategic merit in the concept.
There were key positives for both groups through a bigger market share and opportunities to share costs.
Star shares rallied 15¢ to $5.12, Crown rose 19¢ to $12.53. Tatts rose 10¢ to $4.10 and Tabcorp 4¢ to $4.29.