Tabcorp and Tatts fail to agree on merger deal
Australian gambling companies Tabcorp and Tatts Group have confirmed that they have been unable to reach an agreement over a possible merger deal.
Tabcorp and Tatts have been in talks over a potential merger for several months now, with various sources in the Australian newspaper reporting that an agreement would create a new company worth approximately Aus$9.4 billion (€6.2 billion/US$6.7 billion).
Tabcorp is worth Aus$3.7 billion and runs the TABs in Victoria and New South Wales, while Tatts boasts a market value of Aus$5.7 billion and runs the tote in Queensland, South Australia and the Northern Territory.
Despite having been locked in talks for some time now over a potential merger deal, both companies have now confirmed that they have been unable to come to an agreement and will continue to trade as separate entities.
Both companies confirmed the confidential talks and the inability to agree a deal in separate statements.
Tabcorp said in its statement: “Tabcorp confirms that while confidential discussions have taken place regarding a potential merger, the companies were unable to agree mutually acceptable terms and those discussions have ended.
“There are no further discussions taking place between the parties relating to a merger or any other form of corporate transaction.”
Tatts also confirmed that the talks had concluded, adding: “there are no further discussions taking place between the parties relating to a nil-premium merger of equals or any other form of corporate transaction with Tabcorp”.
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