SBC News Voice of the Sports Betting Industry
Despite failing to agree merger terms, Australian business news sources have reported that competitors Tabcorp and Tatts Group may enter some form of corporate union in 2016.
Business news sources have reported that Tabcorp governance are still closely monitoring Tatts wagering assets in Queensland, South Australia and the Northern Territory.
Following a weekend of speculation, on Monday Tabcorp and Tatts governances’ confirmed that merger talks had taken place, however both companies could not reach an agreement on key terms regarding the a potential deal.
Industry commentators have stated that the companies could not agree on a price plan for a merger of equals.
Although merger negotiations have collapsed, business analysts have detailed that Tatts Group may look to strip its wagering assets and sell the division to Tabcorp. The move would see Tatts Group focus its operations on its revenue driving lottery assets.
With a deeper focus in sports betting, the move would aid Tabcorp, who under changing market conditions have seen the entry of numerous international betting operators into the Australian market.
A wagering merger between the two organisations would likely be favoured by the Australian Competition & Consumer Commission (ACCC)
