Merger appeal is upheld

Watchdog gets another bite at Tabcorp-Tatts deal

THE $11 billion merger of Tabcorp and Tatts will return to the Australian Competition Tribunal after the Federal Court upheld an appeal against the deal.

Delivered by the Full Federal Court yesterday, the ruling means the case will again be heard by the tribunal.

The reasons for the court’s ruling – which comes almost a year after the merger was first proposed – have been embargoed for five days.

Despite fierce objections from corporate bookies including James Packer’s CrownBet, the deal was approved by the tribunal in June.

The Australian Competition and Consumer Commission and CrownBet then asked the Full Federal Court to review the decision.

ACCC chairman Rod Sims yesterday welcomed the court’s decision but said he was awaiting the details of the judgment.

“We are clearly very pleased that the court has upheld our appeal. We need to see the detail to know the extent of that,” he said.

“These were important points of principle that had to be challenged.’’

CrownBet the ruling.

“I look forward to it going back to the competition tribunal and would be hoping for a different outcome when it hears the case again,’’ said CrownBet chief Matt Trip.

Mr Sims had previously said three points of law – which the commission relied on to make its decisions – need to be clarified also welcomed following the competition tribunal’s initial ruling.

Last month, Mr Sims said the commission accepted it needed to do more to convince courts and tribunals of its point of view, including gathering more evidence, potentially blowing out merger timelines.

“It is clear that our current approach to merger review and litigation preparation is not resulting in adequately probative and persuasive evidence for the tribunal or Federal Court,” he said. “This can be expected to increase the burden on the merger parties and the ACCC.”

CrownBet supported the ACCC’s position and claimed the proposed merger would be bad for punters and competition.

Trading in both Tabcorp and Tatts was halted yesterday, with Tabcorp last fetching $4.295 and Tatts $4.075.