Australian business news sources are reporting that market leading gambling operators’ Tabcorp Plc and Tatts Group have entered advanced talks to create an AUS $9 billion enterprise.
The operators have previously engaged in merger discussions. In November 2016, Tabcorp and Tatts governance entered initial discussions but quickly repealed discussions after failing to agree on any potential merger terms.
Today both operators requested the Australian Exchange (ASX) to halt trading pending the ‘outcome of discussions’.
Early analyst speculation on the latest Tabcorp and Tatts merger attempt is so far positive. Industry commentators are pointing towards a merger of equals, with Australian business analysts detailing that both operators hold share prices that are reflective of their underlying values.
Further positives see business analysts predict favourable merger conditions to be set by the Australian Competition & Consumer Commission (ACCC), as Australia’s betting sector has seen a number of heavily backed international operators enter the market in recent years adding to consumer choice.
Brisbane-based Tatts Australia’s leading lottery and keno operator is valued at circa AUS $5.3 billion (Monday closing $3.39), whilst Melbourne-headquartered Tabcorp Australia’s holds a value of AUS $4 billion (Monday closing price $4.89).
A potential merger would see Tabcorp retail assets in Victoria and New South Wales combined with Tatts Group operations in Queensland, South Australia and the Northern Territory, with a view to creating a unified bookmaker for the Australian market.
Source: SBC News
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