The Star Entertainment Group has officially entered the race for James Packer’s Crown Resorts
Star proposed a $12 billion merger that would create a gambling and hospitality giant spanning seven properties in four states.
The casino operator operates venues in Australia’s New South Wales and Queensland.
‘Largest resort operator in the Asia-Pacific’
The Star Entertainment Group’s chairman, John O’Neil 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 Star’s chairman, John O’Neill, detailed the merger would list on the ASX.
“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.”
Crown runs into regulation issues
It’s hoped the merger would be the solution to Crown’s regulatory troubles.
Regulatory woes continue to block Crown’s new casino in Sydney’s Barangaroo district from commencing gaming operations due to governance problems and money laundering risks.
Crown Resort’s largest shareholder, James Packer, is keen to exit the organisation, a move that may also assist the company in gaining regulatory approvals in New South Wales.
Australia’s royal commission on Crown
Regulators suspended Crown’s licence Australian Government invests big in the modern digital economy for its new Sydney casino in February, and royal commissions into the company will begin in Victoria next week and in Western Australia on Monday.
Crown will continue to face a royal commission, investigating its past practices and compliance with gaming and money laundering laws in Victoria and Western Australia.
