The long-planned merger between wagering giants Tabcorp and Tatts has been given approval for the second time by the Australian Competition Tribunal on Friday.
The ACT originally granted approval for the merger in June but that decision was challenged by the Australian Competition and Consumer Commission and corporate bookmaker CrownBet at the Federal Court.
The court then referred the matter back to the president of the ACT, Justice John Middleton, for further examination.
In a brief summary that was released, the judge noted that the tribunal was satisfied ‘the proposed merger is likely to result in substantial public benefits’ and that ‘the tribunal is satisfied in all 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’.
The $11 billion merger can go ahead on one condition in that Tabcorp must sell its Odyssey Gaming business in Queensland, the same condition that was imposed in the original decision by the ACT.
ACCC chairman Rod Sims has left open the prospect of an additional appeal, for which any party has 28 days to lodge, saying that the ACCC would consider the detailed reasoning when it became available.
“When the ACCC sought review of the tribunal’s earlier determination, our purpose was to clarify the law. We achieved that objective, with the full court making it clear that the tribunal was required to take into account all competitive detriment that is likely to result from the proposed merger,” Sims said in a statement.
“The tribunal has now reconsidered the evidence, in relation to both anti-competitive detriment and public benefit, and concluded that the merger is likely to result in such benefit that it should be permitted to proceed.”
A CrownBet spokesperson said: “CrownBet will review the Tribunal’s decision and consider all of our options.”
If there is no further appeal, Tatts shareholders will meet on November 30 to agree to the merger, which will then require final court approval.
An appeal could prove problematic for Tabcorp and Tatts if lodged 28 days from the decision, as that would fall in mid-December, potentially making it tricky for a full Federal Court hearing to take place before Tabcorp’s offer expires on December 31.
– racing.com
