The Australian Competition and Consumer Commission has rejected Tabcorp\’s A$1.9 billion hostile offer for UNiTAB, opposing Tabcorp\’s plan to add betting shops in Queensland, South Australia and the Northern Territory to its outlets in Victoria and New South Wales.
“The proposed acquisition is likely to substantially lessen competition in a number of markets related to wagering in Australia,” the Australian antitrust regulator said in a statement.
Unitab shareholders will vote on a separate merger proposal with Tattersall\’s next week, but the decision of the ACCC increases the likelihood of a friendly merger between the betting operator and the lottery operator.
In separate news, betting exchange Betfair will begin full local operations in Australia on August 22.
UPDATE: Tabcorp has withdrawn its A$1.9 billion takeover offer for UNiTAB clearing the way for Tattersall\’s planned “merger of equals” with the lottery operator. Tabcorp decided not to proceed with the hostile takeover after the ACCC opposed the acquisition. “Tabcorp disagrees with the decision of the ACCC but will not challenge the ruling,” said Tabcorp Managing Director Matthew Slatter. “While Unitab would have been a good strategic fit and delivered value for our shareholders, it was never a \’must have\’.”
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