TABCORP WARNS ACCC APPEAL WILL DELAY TATTS MERGER
Written on the 12 July 2017 by David Simmons
GAMBLING group Tabcorp (ASX: TAH) will fight the Australian Competition and Consumer Commissions' (ACCC) decision to appeal the decision of the Australian Competition Tribunal granting approval for its merger with Tatts Group (ASX: TTS).
The appeal was lodged by the ACCC on Monday, and Tabcorp issued a statement saying it will delay its $11 billion acquisition of Tatts.
"The ACCC's application will impact the timing of the implementation of the transaction, though the precise impact will not be known until the court has considered the matter," says Tabcorp.
Tabcorp is seeking an expedited hearing from the Federal Court to ensure substantial delays do not occur.
The Melbourne based group believe the implementation of the merger is achievable in the last quarter of 2017, though no clear date can be given by the group at this time.
On Monday, the ACCC announced it would appeal the decision of the Australian Competition Tribunal to allow Tabcorp to acquire Tatts Group.
The consumer watchdog said there were fundamental questions of law left unanswered by the ACCC that would impact "all future merger and non-merger authorisation assessments".
The Tribunal gave Tabcorp the green light in June to acquire Tatts Group for $11 billion, on the condition that Tabcorp would divest its Odyssey gaming business in Queensland.
The two companies remain committed to the transaction at this time and intend to oppose the ACCC's application.
Author: David Simmons