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South Africa: Tsogo Sun and Sun International cancel casino deal

 |  July 5, 2015

Tsogo Sun Holdings, a major South African hotel and casino operator, announced on Friday that it had canceled its plans to purchase a minority stake in two casinos operated by rival Sun International. The 2.1 million acquisition deal was first announced in May 2014.

Earlier this year, the Competition Commission of South Africa recommended to the country’s Competition Tribunal that the acquisition deal between the two major gambling operators should be prevented from being completed. Officials voiced concerns that if Tsogo Sun purchased the two casinos, this would result in competition in the region being blunted.

They also pointed to the fact that the coordination between Tsogo Sun and Sun International would eventually lead to casino visitors being offered lower-quality services at higher prices.

Both companies have started withdrawing the applications they had filed to the relevant regulatory bodies.

Full content: MoneyWeb

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