ACCC will not oppose Tabcorp’s proposed acquisition of Intecq

3 November 2016

The Australian Competition and Consumer Commission will not oppose Tabcorp Holdings Limited’s (ASX:TAH) proposed acquisition of Intecq Limited (ASX:ITQ).

The ACCC review focussed on the supply of gaming and promotional management systems to gaming venues in both Victoria and New South Wales.

“Our inquiries with industry participants suggested that Tabcorp and Intecq are not currently close competitors for the supply of gaming and promotional management systems,” ACCC Chairman Rod Sims said.

“In both the New South Wales and Victorian markets there are alternative suppliers of gaming and promotional management systems and these alternative suppliers will likely prevent Tabcorp from raising prices or reducing the quality of its services.”

The ACCC also explored venues’ concerns that following the transaction Tabcorp may misuse gaming and customer data obtained from venues that are current customers of Intecq, to favour venues that use Tabcorp’s full service products in a way that would distort competitive dynamics.

“The ACCC recognises that Tabcorp and Intecq operate in a heavily regulated environment. Misuse of venue data in the manner contemplated could result in severe consequences for Tabcorp, including the potential cancellation of Tabcorp’s licences to operate in both Victoria and New South Wales,” Mr Sims said. 

“Given the heavily regulated nature of the industry these businesses are operating in, and the consequences for failing to comply with those regulations, the ACCC considers Tabcorp is unlikely to misuse Intecq’s venue data to distort competition following the acquisition.”

“Tatts Group is also a supplier of gaming and promotional management systems, so the acquisition of Intecq by Tabcorp will likely be relevant to the ACCC’s consideration of the proposed Tabcorp-Tatts merger. However, that potential transaction did not have a bearing on this particular decision.”

“Any competition concerns relating to a combination of the three businesses [Tabcorp, Intecq and Tatts] will be dealt with in the context of the Tabcorp-Tatts review,” Mr Sims said.

The ACCC expects to commence a review of the proposed Tabcorp/Tatts merger proposal once a submission has been received from the parties. 

Please see the ACCC’s public register for more information: Tabcorp Holdings Limited - proposed acquisition of Intecq Limited

Background

Intecq Limited manufactures and supplies gaming and promotional management systems.

Tabcorp Holdings Limited, through its business division Tabcorp Gaming Solutions (TGS), resupplies gaming and promotional management systems.

Intecq and TGS overlap in the supply of gaming and promotional management systems in Victoria and New South Wales.

 

Release number: 
MR 202/16
ACCC Infocentre: 

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