Tabcorp-Tatts tie-up hits fresh hurdle as doubts loom over tribunal’s jurisidiction
The Tabcorp-Tatts merger has been thrown into disarray, with doubts emerging about the tribunal’s jurisdiction.
The $11 billion merger between Tabcorp and Tatts has been thrown into further confusion today, with the jurisdiction of the Australian Competition Tribunal being questioned, which means Tabcorp might have to file a new application.
A fresh application could take another three months to complete and raises doubts over the proposed Tatts meeting to consider the merger on October 18.
ACT President Justice John Middleton has aired the suggestion with parties to the matter today, with the suggestion the ACT’s jurisdiction expired on September 10.
Final decisions are to be made on the issue which is being debated today.
Justice Middleton has scheduled a directions hearing for the matter on Tuesday and, yesterday, the full reasons for the Full Court’s decision were made public.
Tabcorp this morning annunced to the market that all state and territory gambling authorities had given the regulatory green light to the proposed merger.
Earlier this week the Full Court set aside the Tribunal’s decision arguing it didn’t take full weight of the ACCC’s arguments on the detriments to competition.
It ruled these must be substantial to be included but the ACCC argued they must be considered to weigh against the public benefits.
While the issue may seem technical, it was enough for the Full Court to set aside the original Tribunal decision.
The question now is whether the Tribunal has standing to reconsider the matter.
The ACCC began examining the deal in November last year and issued a statement of reasons in March this year.
Tabcorp surprised many by taking the matter to the Tribunal without waiting for a final decision from the ACCC.
This tactic is now being questioned given the ACCC appeared set to clear the merger in any case.
The ACCC changed its mind in the Tribunal and opposed the merger.
