Target(s)
- Centrebet International Limited
Summary
Sportingbet PLC (Sportingbet) proposed to acquire 100% of the shares of Centrebet International Limited (CIL).Market definition
The ACCC considered the competitive effects of the proposed acquisition in the context of a national market for wagering on racing events and a national market for wagering on sporting events.Competition analysis
The ACCC concluded that the proposed acquisition was not likely to substantially lessen competition in any relevant market for the following reasons:- post acquisition, the merged firm would continue to be constrained by the totalisators and other corporate bookmakers;
- punters would continue to have many alternative suppliers of wagering services;
- the ability of punters to readily compare odds and minimal switching costs would constrain the merged firm from an attempted increase in margin or diminished service offering; and
- although barriers to entry appear to be high, growth in the size of wagering markets in recent years has provided incentive for new entry.
Timeline
| Date | Event |
|---|---|
| 16/05/2011 | ACCC commenced review under the Merger Review Process Guidelines. |
| 03/06/2011 | Closing date for submissions from interested parties. |
| 01/07/2011 | ACCC announced it would not oppose the proposed acquisition. |