Sun International abandons Peermont takeover plan | Fin24
 
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Sun International abandons Peermont takeover plan

Apr 06 2016 17:28

Johannesburg - Sun International has shelved its R9.5bn ($623m) plan to buy rival casino owner Peermont Group, the company said on Wednesday.

Sun International, which owns and operates casinos and hotels in Africa and Latin America, last year announced its intention to buy 100% of Peermont's holding company, Maxshell 114.

Peermont owns and operates several hotels and eight casinos in Africa's most advanced economy.

"I can confirm that we informed the Tribunal that we have abandoned our intention to merge, and will not be taking any further steps to implement the merger," Sun International spokesman Michael Farr said, referring to the nation's Competition Tribunal, an antitrust oversight body.

South Africa's Competition Commission last year recommended that the deal be blocked, saying that the transaction would prohibit competition in Gauteng, the nation's most populous and prosperous province.

"The parties informed the Tribunal at a pre-hearing that there was uncertainty as to whether the merger would go ahead and asked for the case to be removed from the roll," the Competition Tribunal said in a statement.

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