Tatts-Tabcorp merger clears final hurdles

The £6.5bn merger between Tatts Group and Tabcorp has cleared its final hurdles after the deal was officially approved by the Supreme Court of Victoria.

The announcement comes just one day after Tatts shareholders voted overwhelmingly to approve the deal, and means the oft-threatened merger is finally set to complete on 22 December.

Tabcorp said the combination created a “world-class, diversified gambling entertainment group with a large national footprint and a diverse suite of product offerings across wagering, media, lotteries, Keno and gaming services”.

Chairman Paula Dwyer, in a letter to shareholders, said the integration of the two businesses is expected to take approximately two years, subject to regulatory approvals.

“Now the challenge is to complete the integration and deliver at least $130 million in synergies we have committed to,” she said, adding that the saving should be delivered by 2020.

Dwyer also praised the “tremendous team effort” needed to get the merger across the line in the 14 months since it was announced.

The deal faced numerous obstructions, including opposition from competition tribunals and rivals including CrownBet.

“Collectively we believe these businesses belong together,” Dwyer said. “And it was worth giving it a red-hot go,” she said. “I never lost my resolve.”