The long proposed merger between Tabcorp Holdings and Tatts Group has moved a further step towards completion, following approval of the scheme from the Supreme Court of Victoria.
Originally announced in October of 2016, court orders have now been lodged with The Australian Securities and Investments Commission (ASIC), with the scheme now effective and a date of implementation set for December 22, ahead of the merger agreements expiry on the final day of this month.
Tabcorp notes that, subject to the necessary approvals of regulatory bodies, the integration of the two businesses, set to create the second largest gambling company in Australia, is expected to take approximately two years.
In a note to Tabcorp shareholders, chairman 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 of talent from within each organisation, ensuring that the combined group is well positioned to invest, innovate and compete in a rapidly evolving operating environment.
“The combination is expected to create significant value for Tabcorp shareholders, and benefits for our customers, racing industry, agencies, licenced venues, newsagents, and Federal, State and Territory Governments.”
Yesterday Tabcorp noted the divestment of Odyssey Gaming Services to Australian National Hotels (ANH), in accordance with demands outlined by the Australian Competitions Tribunal (ACT) for any such merger deal to take place.
THe $11bn merger, which has undertaken well over a year of negotiations, has endured previous hold ups due to opposition from both the Australian Competition and Consumer Commission (ACCC) and rival betting operator CrownBet.
Following a federal review being ordered by the full Federal Court after objections from the two parties, the ACT gave the green light for the second time last month.
A short time later both CrownBet and the ACCC, who had acted as supervising body for the merger before being dropped in favour of the ACT, detailed they would no longer challenged the mergers approval.