Miss Gaming
ACCC Poses Concerns on Tabcorp Bid
The proposed $1.9 billion takeover offer of gaming giant Tabcorp Holdings' for UniTAB Ltd faced some concerns coming from the Australian Competition and Consumer Commission (ACCC)'s end.
ACCC recently issued remarks saying Tabcorp's proposal lays some "potentially significant competition concerns".
In a statement, the ACCC said, "After conducting market inquiries, the Australian Competition and Consumer Commission has formed the view that there are potentially significant competition concerns regarding the proposed acquisition of UniTAB Ltd by Tabcorp Holdings Ltd."
Further in the statement said, "In particular, the ACCC has formed the preliminary view that the proposed acquisition is likely to result in a substantial lessening of competition in the market for pooling services.
"In particular, the ACCC has formed the preliminary view that the proposed acquisition is likely to result in a substantial lessening of competition in the market for pooling services."
Tabcorp has responded to ACCC's concern and filed a draft undertaking, in response to the said competition concerns.
Still, ACCC says it is set to solicit comments from the market and industry players before it issues a final decision.
In the event that ACCC firmly blocks the Tabcorp proposal, Queensland wagering firm UNiTAB will be expected by the industry to merge with another gaming giant, Tattersall's.
Meanwhile, UNiTAB shareholders have scheduled a meeting on the third week of August. The said meeting has been postponed twice.