The Star Entertainment Group has proposed a merger bid with Crown Resorts to create an estimated $12 billion gambling, entertainment and tourism giant operating across four states.
The proposal comes months after the newly built Crown Sydney was deemed not suitable to hold a gambling license.
The non-binding proposal offers an exchange of 2.68 Star shares per Crown share.
The Star Entertainment Group chairman John O’Neill said combining The Star and Crown would create a national tourism and entertainment leader.
“A merger of The Star and Crown would result in significant scale and diversification and unlock an estimated $2 billion in net value from synergies,” he said.
“With a portfolio of world-class properties across four States in Australia’s most attractive and populated catchment areas and tourism hubs, the combined group would be a compelling investment proposition and one of the largest and most attractive integrated resort operators in the Asia Pacific region.”
The Australian Competition and Consumer Commission (ACCC) has confirmed it will hold a public review of the proposed merger, particularly looking at the competition between Crown Sydney in Barangaroo and The Star in Pyrmont.
The Star currently operates casinos in Sydney, Brisbane and the Gold Coast, while Crown has sites in Melbourne, Perth and Sydney.
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