ACCC appeals competition tribunal’s approval of Tabcorp-Tatts merger

The ACCC has lodged an unprecedented appeal of the Australian Competition Tribunal’s approval of the Tabcorp-Tatts merger.

The Australian Competititon Tribunal has approved Tabcorp’s $11 billion takeover bid for Tatts last month. (AFP PHOTO/PETER PARKS)

The $11 billion Tabcorp merger with Tatts is still on hold, with the ACCC lodging an unprecedented appeal against the Australian Competition Tribunal’s clearance of the deal.

The ACCC didn’t object to the final ruling but to some of the factors considered in the judgement, including the use of cost savings and synergy benefits, which the ACCC argues are private not public benefits.

The ACT allows mergers where the public benefit outweighs any competition detriment.

The ACCC objected to the fact the Tribunal only considered substantially lessening of competition when it argued any lessening was a detriment not just a substantial lessening.

It also argued the Tribunal failed to consider what would happen if the deal didn’t go through in the so-called with or without consideration.

The case was the third tribunal ruling which has gone against the ACCC and the appeal is designed to clear up these legal issues.