Victoria, NSW give Blackstone green light to Crown Resorts $8.9bn takeover

Blackstone has moved one step closer to ownership of the James Packer-backed Crown after the Victorian and NSW gaming regulators approved its $8.9bn takeover.

Blackstone has moved one step closer to ownership of the James Packer-backed Crown, after the Victorian gaming regulator approved its $8.9bn takeover. Picture: David Crosling/NCA NewsWire

Blackstone has moved one step closer to ownership of the James Packer-backed Crown Resorts, after Victorian and NSW gaming regulators flashed the green light for its $8.9bn takeover of the casino company.

The Australian reported on June 2 that Victoria’s Independent Liquor and Gaming Authority gave its approval to the private equity firm.

“The Victorian Gambling and Casino Control Commission (VGCCC) has approved the Blackstone Group as a suitable associate of Melbourne’s casino operator and its takeover of Crown as a major change in the state of the casino operator’s affairs,” the regulator said in a statement on Thursday morning.

As previously reported in The Australian, the VGCCC’s NSW counterpart is believed to have also approved Blackstone’s $13.10-a-share offer, which was also confirmed on Thursday morning.

The NSW Independent Liquor & Gaming Authority chairperson Philip Crawford said Blackstone had been subject to an extensive probity assessment that examined its capacity to address the risks and issues of concern identified in the Bergin Report.

“The probity assessment has also resulted in certain persons being approved to become ‘close associates’ of Crown Sydney,” Mr Crawford said.

Under the deal, Mr Packer is set to pocket $3.2bn for his 37 per cent stake in the controversial company. For the deal to proceed all that remains is gaining regulatory approval from the gaming regulator in Western Australia.

Following that, the deal will return to the Federal Court for its final rubber stamp, heralding the departure of the Packer dynasty from the listed market for Australian shares.

Mr Packer is now based in the US and maintains homes around the world.

The Victorian approval, which the regulator said followed “comprehensive probity investigations into the group and its associates”, comes as the gaming floor at Crown Sydney remains closed.

The NSW regulator has approved its conditional opening; however, the ultimate approval has been held up by cabinet approval in NSW.

The VGCCC, in providing its approval, required Blackstone and Crown to agree to an extensive list of accompanying conditions and protections.

“These conditions will apply on top of the strict requirements that currently apply to the casino operator,” the regulator’s statement said.

Key protections include that Crown Melbourne have a majority independent board of directors, enhanced reporting of anti-money laundering and responsible gambling activities and additional auditing requirements on Crown.

Blackstone must also maintain Crown Melbourne as the flagship casino in Australia.

“In reaching this decision, our specialist team put in many months of work investigating the suitability of the Blackstone Group to become an associate of the Melbourne casino operator,” said VGCCC chairperson Fran Thorn.

“Our approval comes with stringent conditions, which balance delivering stronger controls on the casino and ensuring it continues to be the flagship casino in Australia.

“We will take action should any of these conditions not be met by either Blackstone or Crown.”

Crown shares closed up up 1.96 per cent at $13.

Originally published as Victoria, NSW give Blackstone green light to Crown Resorts $8.9bn takeover