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South Africa: Sun to pay $43 Million to Peermont as casino takeover collapses

 |  May 18, 2016

Sun International will pay $42.8 million)to fellow South African hotel and casino operator Peermont Global after an attempt to buy the closely held company collapsed amid a failure to win antitrust approval.

The owner of the Sun City resort northwest of Johannesburg had agreed to pay as much as 900 million rand to Peermont if the deal failed and a new complex at Menlyn Maine, in the South African capital of Pretoria, started operations. A settlement was reached as the Time Square resort is at an advanced stage of construction and won’t open until April, Sun International said in a statement on Wednesday. Peermont had objected to the project in the High Court before a deal was struck to combine the companies.

Sun International agreed to buy Peermont for 9.4 billion rand in March 2015 to add resorts such as Johannesburg’s Emperor’s Place and resolve the dispute over the Menlyn Maine complex. The Competition Commission recommended in December that the deal be blocked due to the affect on the gambling market in Gauteng, South Africa’s richest province. The Competition Tribunal was due to conduct a hearing into the takeover in June, three months after a March 31 approval deadline set by the companies, Sun International said.

Full Content: Bloomberg

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