Australia

Star, Crown CEOs Meet to Discuss Potential Merger

Published

4 years ago

June 25, 2021

Niji Narayan

Star, Crown CEOs Meet to Discuss Potential Merger

Reading Time: < 1 minute

Crown Resorts CEO Steve McCann has met with Star Entertainment CEO Matt Bekier to discuss the potential merger of the two casino operators.

In May, Star Entertainment made an unsolicited non-binding offer of AU$12bn (US$9.4bn) for Crown Resorts.

Although more details of the virtual meeting have not been released, according to local media, McCann could be willing to work on a deal and may have asked Star to provide more details about its non-bidding offer.

Star Entertainment previously said the merger would deliver between AU$150m to AU$200m of cost synergies per annum with an estimated net value of AU$2bn.

The Australian Competition and Consumer Commission (ACCC) chairman Rod Sims announced that a public review will be carried out to decide whether Star Entertainment would be allowed to make the acquisition.

Sims noted that the potential merger would result in a casino giant with operations in the main Australian states.

According to local media, Sims said: “It’s very early days. But we would look at the market for domestic table game customers and we would look at the competition between Barangaroo and Star in Sydney.”

If Crown finally accepts the offer, Crown shareholders could retain 59% of the shares while Star shareholders could own 41% of the newly-merged entity.

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Niji Narayan

Niji Narayan has been in the writing industry for well over a decade or so. He prides himself as one of the few survivors left in the world who have actually mastered the impossible art of copy editing. Niji graduated in Physics and obtained his Master’s degree in Communication and Journalism. He has always interested in sports writing and travel writing. He has written for numerous websites and his in-depth analytical articles top sports magazines like Cricket Today and Sports Today. He reports gaming industry headlines from all around the globe.