South Africa’s Competition Commission on Sunday gave the red light to Sun International’s proposed acquisition of Peermont Holdings, recommending that the Competition Tribunal prohibit the merger due to its potential effects on market competition.
The $396.6 million (R70 billion) deal, announced in December last year, would include Peermont’s Emperors Palace resort and its online betting brand, PalaceBet. Sun International’s share price closed at R44.67 on Friday, up 0.86% on the JSE.
The Competition Commission said the merger would significantly impact the casino gambling landscape in South Africa, reducing the number of national casino operators from three to two and creating a highly concentrated market where two companies would control 92% of casinos in the country.
