Tabcorp and Tatts Group renew $10bn merger discussions
Potential tie-up between Australian giants back on the table a year after earlier talks collapsed
Tabcorp and Tatts Group are back in talks regarding a potential tie-up as the two firms once again attempt to form a new Australian wagering giant.
Earlier today the ASX-listed firms both requested a halt in trading of their ordinary shares due to a “potential change of control transaction”, with a further announcement expected tomorrow.
“Tatts requests that the trading halt remain in place until the earlier of such time Tatts makes an announcement to the market concerning the potential transaction and the commencement of normal trading on Wednesday 19 October 2016,” today’s Tatts’ statement read.
The potential merger, which would create a firm estimated to be worth AU$10bn (£6.25bn), comes nearly a year after the two operators attempted to complete a similar transaction.
Tabcorp and Tatts Group were unable to agree “mutually acceptable terms” and according to local media reports at the time, a sharp drop in Tabcorp’s share price had scuppered the deal.
While both firms major on retail, Tabcorp operates the online Luxbet brand and Tatts has its UBET digital offering.
In addition, Tabcorp recently entered the UK online gambling market with the launch of a The Sun branded sportsbook led by former William Hill director Jamie Hart.
Tabcorp’s share price currently stands at $4.89, while Tatts Group’s is $3.59.