Australian casino operator Star Entertainment Group is expected make a second bid for Crown Resorts in February 2022. The merged casino giants would create the largest gaming entity in the country, by far.
The Star proposed a $12 billion merger earlier this year. It withdrew its bid in July due to concerns that a money laundering probe might cost Crown its Melbourne license. In August, Star CEO Matt Bekier told local media he remained interested in a takeover deal.
In November, U.S. private equity firm Blackstone also came back with a sweetened takeover offer for Crown Resorts, offering AU$12.50 a share, reported Asia Gaming Brief. Crown rejected the bid saying it didn’t represent “compelling value” for Crown shareholders.
Crown still awaits the outcome of a Royal Commission in Western Australia and has been found unsuitable to hold licenses in New South Wales and Victoria. The James Packer-controlled company has been tarred by charges of money laundering, regulatory shortcomings and tax evasion in the states where it does business. Its importance to local economies has been its saving grace; it has been given a chance to rehabilitate itself by officials in NSW and Victoria.
Meanwhile, Star is also under the regulatory microscope due to similar allegations of money laundering and lax oversight.
