Australia’s CrownBet won’t oppose Tabcorp’s Tatts takeover

Business News

Betting giant Tabcorp Holdings Ltd said on Thursday that rival CrownBet has agreed not to oppose the company’s $4.7 billion (£3.5 billion) takeover offer for Tatts Group Ltd.

Tabcorp’s offer for the lottery owner was cleared by an Australian tribunal earlier this month and CrownBet has agreed not to apply for judicial review of the tribunal’s decision, the company said in a statement.

Under an agreement with CrownBet, Tabcorp said it will supply a digital stream of horseracing channels SKY 1 and SKY 2 to CrownBet for the personal use of its Australian wagering customers on their mobile and PC devices.

CrownBet, majority-owned by casino giant Crown Resorts, earlier this year began legal proceedings over the authorisation of the Tatts takeover by the Australian Competition Tribunal.

The Tabcorp-Tatts union is the third attempt by the two firms to merge since 2006 in a bid to create a gambling powerhouse and fend off rivals like Britain’s William Hill and Ireland’s Paddy Power Betfair.

Last week, Reuters exclusively reported that Paddy Power Betfair and William Hill have separately held talks about a deal with CrownBet as UK-focused gambling companies seek to expand overseas.

Shares of Tabcorp rose 0.8 percent in morning trade, compared with a 0.9 percent fall on the benchmark index.