OPPOSITION TO TABCORP-TATTS MERGER INCREASES WITH CROWNBET WEIGHING IN

OPPOSITION TO TABCORP-TATTS MERGER INCREASES WITH CROWNBET WEIGHING IN
ONLINE betting company CrownBet has joined the consumer watchdog in calling for a judicial review of the proposed $11 billion merger of gaming giants Tabcorp (ASX: TAH) and Tatts Group (ASX: TTS).

The Australian Competition Tribunal (ACT) granted authorisation for the Tabcorp-Tatts merger in June, ruling the deal would create substantial public benefits.

The move by CrownBet, which is 62 per cent-owned by James Packer-controlled casinos operator Crown Resorts, follows an application earlier this week from the Australian Competition and Consumer Commission (ACCC) which contends the ACT may have made three errors of law in its decision.

Tabcorp and Tatts released a joint statement to the ASX saying they will oppose the CrownBet application and "will pursue an expedited hearing of the matter".

Tabcorp has already said it will oppose the ACCC's application and that Tabcorp and Tatts remained committed to their proposed merger.

The ACCC claims the tribunal made errors that are fundamental to the case and to future merger assessments.

Tabcorp initially sought informal merger clearance from the ACCC but, shortly after the watchdog published a statement of issues in March, withdrew the application and instead lodged an application for authorisation with the ACT.

The ACCC and Australian Competition Tribunal apply different tests when assessing a merger.

The ACCC considers if there would be a substantial lessening of competition, while the tribunal can authorise a merger if the public benefits outweigh the public detriments.

Business News Australia

Get our daily business news

Sign up to our free email news updates.

 
Whitefox Recruitment founder Luke Hemmings making strides as a careers leader
Partner Content
After relocating his Canberra-founded company Whitefox Recruitment to the Gold Coast la...
Whitefox Recruitment
Advertisement

Related Stories

ASIC secures its first court win for greenwashing against US giant Vanguard

ASIC secures its first court win for greenwashing against US giant Vanguard

The Australian corporate watchdog has caught out one of the world&r...

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Australian-founded medicinal cannabis company Althea Group (ASX: AG...

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Listed funds manager 360 Capital Group (ASX: TGP) has offloaded its...

Lendlease gains approval for $1.7b transformation of Queen Victoria Market precinct

Lendlease gains approval for $1.7b transformation of Queen Victoria Market precinct

Australian development giant Lendlease Group (ASX: LLC) has been gr...