The AU$11 billion merger of TabCorp and Tatts Group has received a second approval by the Australian Competition Tribunal.
“The tribunal is satisfied in all the circumstances that the proposed merger would result, or would be likely to result, in such a benefit to the public that the acquisition should be allowed to occur,” said Justice John Middleton in handing down the decision.
The tribunal’s initial decision was challenged by the Australian Competition and Consumer Commission and led to a court decision instructing the tribunal to conduct another review of the decision. The court upheld concerns from the commission that the tribunal erred by failing to take into account all possible instances of competition being lessened by the acquisition and by failing to compare the likely future state of competition both with and without the proposed acquisition in its consideration of whether the proposed acquisition was likely to result in any detriment.
The commission could appeal the second approval, as could other opponents, but the second approval seems to put the merger back on track.
In a press statement, Tabcorp said it wants to complete the deal before the end of the year while Tatts Group acknowledged there could be some delay due to the appeal period and the need to provide supplementary disclosures to shareholders ahead of the planned vote on November 30, according to a report at Inside Asian Gaming.
