Tabcorp and Tatts merger goes ahead
The long-running merger of Tabcorp and Tatts Group has finally gone ahead after the Supreme Court of Victoria gave its approval for the deal.
Tabcorp has now written to its shareholders confirming that the deal is now effective and that the two companies will come together under the Tabcorp name on 22 December.
In the letter, Tabcorp’s Chair, Paula Dwyer said: “The combination creates a world-class, diversified gambling entertainment group, with a large national footprint and a diverse product offering across wagering, media, lotteries, Keno and gaming services.
“The combination brings together two highly complementary businesses and a strong pool pf talent from within each organisation, ensuring that the combined group is well positioned to invest, innovate and compete in a rapidly evolving operating environment.”
Dwyer added: “The integration of the two businesses is expected to take approximately two years, subject to the receipt of necessary regulatory approvals. The combination is expected to create significant value for Tabcorp shareholders, and beenfits for our customers, racing industry, agencies, licensed venues, newsagents and Federal, State and Territory Governments.”
The Supreme Court’s approval brings to an end the long-running saga of the proposed merger. The Australian Competition Tribunal (ACT) approved the merger in June, only for that ruling to be appealed by the Australian Competition and Consumer Commission and CrownBet.
The appeal was heard last month, with the ACT giving the go-ahead again, saying that the $11bn merger will bring ‘greater competition’.
Earlier this week Tatts shareholders voted overwhelmingly in favour of the deal, which sent it to the Supreme Court of Victoria for final approval.