Australian gaming giant Tabcorp says it is confident its US$11 billion merger with Tatts Group will still be completed before the end of the year despite the Australian Competition and Consumer Commission (ACCC) applying to the Federal Court for a judicial review of the Australian Competition Tribunal’s decision to approve the move.
In a Tuesday statement, Tabcorp said it had reviewed the ACCC’s application and doesn’t expect the Tribunal’s original findings to be overturned.
“Tabcorp notes that the ACCC has stated it has made the application to the Federal Court to seek to clarify the law as it applies to all merger and non-merger authorizations,” it said. “The factual findings by the Tribunal of substantial public benefits and of no, or insignificant, detriment arising from the transaction are not in issue in the judicial review application.
“Tabcorp will oppose the ACCC’s application and will pursue an expedited hearing. Tabcorp and Tatts remain committed to the Transaction.”
Tabcorp added that, “The ACCC’s application will impact the timing of the implementation of the transaction” but “considers that implementation remains achievable in the last quarter of 2017.”
The ACCC announced its application for a judicial review on Monday, citing “three reviewable errors” in the Tribunal’s finding that the proposed acquisition would result in substantial public benefits and no material detriment.
“The ACCC is alleging the Tribunal made three reviewable errors. It is therefore seeking clarification of these three points of law which are central to the Tribunal’s assessment of Tabcorp’s proposed acquisition of Tatts,” said ACCC Chairman Rod Sims.
“We are seeking judicial review because we believe these legal principles are fundamental not only to the Tabcorp decision but to all future merger and non-merger authorization assessments.”
