Australia’s Star Entertainment Group has ditched a bid to merge with Crown Resorts
In the latest showdown in the battle for the Aussie Casinos – Star proposed a merger bid back in May worth $12 billion.
Star Entertainment operates casinos in Sydney, Gold Coast, and Brisbane while Crown operates venues in Melbourne and Perth, while a built casino in Sydney hasn’t been granted permission to open.
The Star merger with Crown would have created an Australian gaming and hospitality giant with a total market value of $12 billion AUD.
Crown shares dive following Star’s announcement
Shares fell as much as 4.2% in early trading today, cleaving its market value to $6.7 billion.
Star, which is best known for its casino in Sydney, said it “remains open to exploring potential value-enhancing opportunities with Crown,” though engagement with Crown on the merger plan had been “limited.” It said it will closely monitor the outcome of the Melbourne investigation, as well as a concurrent probe into Crown’s Perth casino.
In a separate statement, Crown said it remains “willing to engage” with Star in relation to a potential merger. “The board is committed to maximizing value for all Crown shareholders and will carefully consider any proposal that is consistent with this objective,” it said.
