International News

SYDNEY, June 20, (APP/AFP) – Australian gambling
giants Tabcorp and Tatts were Tuesday given the green light by the competition tribunal to merge, paving the way for the creation of a betting powerhouse following months of uncertainty.
The rival Australian-listed firms announced their plan to merge in
October, but the proposal encountered several hurdles including questions raised by the Australian Competition and Consumer Commission about the impact on competition in Queensland state.
The Australian Competition Tribunal — which Tabcorp took the deal to
in order to sidestep the watchdog — gave it the go-ahead provided the firm sold its Queensland gaming business.
“The tribunal is satisfied in all the 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,” tribunal president
Justice John Middleton said.
Tatts and Tabcorp have pursued the idea of closer ties for years in a
bid to cut costs and chase opportunities globally, and investors welcomed the decision, which would see the formation of a Aus$8.6 billion (US$6.5 billion) titan.
Shares in Tabcorp rose 4.86 percent to Aus$4.85 while Tatts was up
4.08 percent at Aus$4.34, after both lifted a trading halt in Sydney on Tuesday afternoon.