Tabcorp says it remains confident in its proposed merger with Tatts Group, despite a recent legal challenge from the Australian Competition and Consumer Commission (ACCC), which opposes the merger.
On Monday, the ACCC said it had applied for a judicial review of the recent Australian Competition Tribunal (ACT)’s decision to approve the Tabcorp-Tatts merger, alleging that the tribunal made three “reviewable errors” in its decision.
CLSA analysts Anthony Longo on a Wednesday note said it is unlikely the proposed transaction does not go ahead as a result of the latest ACCC push.
“In our view, the best case outcome from the launch of the ACCC’s proceedings is that the proposed merger is delayed,” said Longo.
Tabcorp in a filing to the ASX on Tuesday said it will oppose the ACCC’s application and will pursue an expedited hearing.
It said the application will likely impact the timing of the merger, but said it remains confident that it will be achieved in the last quarter of 2017.