AUSTRALASIA 22
What are the ups and downs for a Crown/Star marriage? A combined entity consisting of The Star Entertainment Group and Crown Resorts would create a behemoth gaming enterprise not just in Australia, but in the wider Asia gaming market, though market observers have flagged a number of regulatory hurdles that could hinder it from ever becoming a reality.
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ver the last few months, investors have been salivating over the Melbourne-based casino operator, which has seen its shares fall as a result of ongoing investigations into the company’s management and operations in NSW, Victoria, and Western Australia, along with a general share price slump due to border closures and covid-19 related lockdowns. In March, a surprise proposal came from U.S. investment manager Blackstone Group to buy out all of Crown’s shares at an indicative price of A$11.85 per share in what would be an A$8 billion deal, which has now been rebuffed. Only a few weeks
Asia Gaming Briefings | June 2021
later, Oaktree Capital Management made an offer of its own – to buy out A$3 billion worth of shares owned by James Packer’s Consolidated Press Holdings at an indicative price of around A$12 a share. However, the boldest move came from The Star Entertainment Group, which put together its own unsolicited, non-binding offer to merge the companies into a A$13 billion Australian gaming giant. The proposed merger is seen by analysts and observers as an overall positive for the two companies should it go ahead – but opinions divide on how it would be seen by Australia’s competition regulator, the Australian
Competition and Consumer Commission. “The biggest issue facing a merger is likely to be the ACCC, which will be concerned about the concentration of ownership and absence of competition in the three key Eastern state markets. NSW will be a particular issue,” said David Green, an Australian gaming industry veteran. The problem wouldn’t be present in Victoria, due to Crown’s monopoly license. Indeed, the ACCC chairman, Rod Sims on Monday told local media he would conduct a public review of the merger proposal. “We will do a detailed investigation. It will be a public review,” said Sims. “It’s very early days. But we would look at the
