In Australia, the proposed multi-billion-dollar merger of bookmaker Tatts Group Limited with giant rival Tabcorp Holdings Limited could now reportedly be completed as early as November. According to a report from the Australian edition of the Business Insider online news portal, the revelation from Melbourne-based Tabcorp Holdings Limited follows June’s approval of the deal by the Australian Competition Tribunal although the arrangement must still be endorsed by Tatts Group Limited shareholders at a special meeting on October 18.
The sports betting pair initially agreed the merger in October of 2016 while the combined diversified gambling entertainment firm is reportedly set to be worth around $9 billion and have a market capitalization of approximately $6.9 billion. Business Insider reported that July saw the Australian Competition and Consumer Commission watchdog ask the Federal Court of Australia to conduct a judicial review into the decision from the Australian Competition Tribunal although Tabcorp Holdings Limited subsequently stated that it remains confident the previous authorization will be upheld.
“With substantially all pre-implementation regulatory approvals now in place, we look forward to continuing to work with Tatts [Group Limited] to successfully complete the transaction and are expecting implementation to take place in November of 2017,” read a statement from Paula Dwyer, Chairperson for Tabcorp Holdings Limited. “Together we will be well placed to pursue more investment and innovation across all our businesses including best-in-class digital products and experiences.”
Business Insider reported that the merger will create a new entity offering a wide range of sports betting, lottery, and keno and gaming services. Tabcorp Holdings Limited purportedly explained that the arrangement is to additionally deliver at least $104.4 million in annual synergies and business improvements with the combined entity expecting to record annual revenues of about $4.1 billion. The transaction is reportedly moreover due to see shareholders of Tabcorp Holdings Limited end up with 42% of the new enterprise while their compatriots for Brisbane-based Tatts Group Limited are to hold approximately 58%.
