Tsogo Makes Play for Sun International

Sun, Apr 19, 2015

Hotel casino operator Tsogo Sun is battling Capetown, South Africa’s Competition Commission for the right to acquire 40 percent of two casinos, including the GrandWest (l.), owned by its competitor, Sun International. Commissioners say the move would give Tsogo an unfair advantage in the West Cape.

Hotel casino leader Tsogo Sun wants to buy 40 percent of two Capetown, South Africa casinos owned by competitor Sun International: the GrandWest casino in Goodwood and the Golden Valley casino in Worcester. But Capetown’s Competition Commission may try to block the deal, saying it will believes it would eliminate competition in the Western Cape and give Tsogo Sun an interest in all five regional casinos, according to BDLive.com.

Commission economist Liberty Mncube said the acquisition would lead to a monopolistic situation that could result in higher prices and lower-quality service. The motivation for the proposed deal, said commission advocate Rafik Bhana, was “to curtail greater competition.”

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