Gold Reef surges on merger approval
Johannesburg - Shares of Gold Reef Resorts [JSE:GDF] jumped more than 5% after the competition watchdog unconditionally approved the casino operator's R21bn merger with rival Tsogo Sun Holdings.
There had been concern that Gold Reef would have to sell its Silverstar Casino assets to do the deal, but the Competition Tribunal said on Friday it had approved the bid without conditions.
Shares of Gold Reef were up 5.6% at R17.75 in mid-morning trade.
The decision followed an eight-day hearing in which the Competition Commission recommended the approval of the deal, subject to the merged entity selling off Silverstar Casino to maintain competition in the Gauteng casino gaming market.
Tsogo and Gold Reef, however, argued that competition would not be lessened by the merger and so it was not necessary to divest from