Reports have suggested that the Australian Competition Watchdog has approved the proposed merger of Flutter Entertainment and The Stars Group.
Tuesday, the UK-listed Flutter Entertainment announced that it has received a notification from the Australian Competition and Consumer Commission (ACCC). The notification says that the proposed deal with The Stars Group has received informal approval. However, it is still subject to the approval of the Australian Foreign Investment Review Board along with other international regulatory bodies, Flutter informed. The announcement has missed the opinion of the Australian Competition Tribunal as well. The Competition and Markets Authority of the UK has already announced that the deal is under investigation to examine the lessening of competition.
Flutter basically runs the Sportsbet, an Australian Online Sports Betting Operator. TSG handles BetEasy online wagering business in Australia. Two companies roughly control the two-third market share in the online betting market in Australia. The merger thus would create it as the single largest online operator.
None of the rival companies have objected to the deal in Australia so far. When Tabcorp acquired Tatts Group, it became dominant in the land-based wagering business a few years back. The experts believe it would not be a problem for the companies to have a merger thus.
TSG has once again announced to avoid traditional call with analysts while publishing the earnings report. The investors are not really making moves in the market. Flutter shares are up by 1% in the London Stock Exchange whereas TSG is up by 2% on Nasdaq.