Australia: Tatts, Tabcorp merger will produce a behemoth, says ACCC

The competition regulator has warned that if Tabcorp is allowed to go ahead with its $11 billion merger with Tatts it will create a gaming behemoth that will ­dominate the market.

“Tabcorp would become, by a very significant margin, the ­dominant provider of wagering in ­Australia,” counsel for the Australian Competition & Consumer Commission, Andrew McClelland, QC, told a tribunal hearing in Melbourne yesterday.

Hearings before the Australian Competition Tribunal to decide the fate of the proposed deal began yesterday as Tim Pallas, Treasurer for the State of Victoria weighed into the ­debate, pleading with any merged entity to remain in Victoria and continue to grow.

“We are proud to have had Tabcorp headquartered in ­Melbourne for many years. The company has made a significant contribution to this state,” he said.

The ACCC also returned fire at Tabcorp’s attack on the regulator as “not connected to reality”, ­saying in written submissions that “the assertion by Tabcorp that the ACCC has engaged in speculative theories of harm is pejorative and without foundation”.

Full Content: Financial Review

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