The potential acquisition of Tabcorp’s betting and media arm is set to encounter some challenges on the way.
The Australian Competition and Consumer Commission (ACCC) has noted that it is closely monitoring the increasing interest in the potential sale of the wagering and media business of the local gaming and gambling company Tabcorp Holdings.
As recently reported by Casino Guardian, the gambling giant confirmed that it had received a number of unsolicited takeover offers in regard to its betting and media business. At the time the company confirmed receiving the bids for its non-core business, it also shared the proposals were non-binding and said they would remain confidential at that stage. In addition, Tabcorp explained that receiving some takeover offers about the aforementioned business assets does not necessarily mean that the transaction would take place.
Now, the ACCC has emphasised that if a deal of this scale takes place, it is very likely to change the entire Australian betting sector as we know it today. Analysts have recently estimated that the betting and media unit of Tabcorp is worth approximately AU$3 billion.
In any case, if the Australian gambling company decides to dispose of its wagering and media business and accepts a takeover offer, the winning bidder would be required to convince the Australian Competition and Consumer Commission that the transaction would not only be carried out in line with the different states’ legislation but would also bring benefits to the racing industry.
Racing NSW CEO Not to Give Approval to Gambling Assets’ Sale Lightly
The Australian gambling company would have to receive a formal takeover offer first, before anything else follows. Despite it has kept the details about the unsolicited offers secret, some analysts have shared that Tabcorp has been approached by a number of prospective bidders, including several betting operators such as the British gambling giant Entain and private equity groups.
According to media reports, the considered sale will probably face not only regulatory hurdles but also some resistance from an unexpected party – one of the most powerful sports administrators in Australia – Peter V’landys.
As recently reported by Casino Guardian, Mr V’landys revealed that so far, Racing NSW had not been approached in association with the potential sale of Tabcorp’s wagering and media arm. He warned that the Australian gambling company, along with whoever wins the takeover bid, would have to make an agreement with Racing NSW before the transaction is allowed to be completed. He further noted that Racing New South Wales would not give the green light to the deal lightly.
Mr V’landys explained that the takeover bid that is potentially approved by Tabcorp’s stakeholders would also have to comply with the needs and requirements of Racing NSW. According to some analysts, this could be a hurdle for a potential deal to be finalised, especially considering the fact that the sector is trying to recover from the considerable negative impact that the coronavirus pandemic has been having on it.