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Tabcorp & Tatts Announce $11B Merger
Tabcorp and Tatts Group yesterday announced an agreement to merge operations and create an $11 billion gambling powerhouse, reports the Sydney Morning Herald. "In today's rapidly changing landscape, bringing together our businesses will create a strong and diversified business that is well placed to invest, innovate and compete, both in Australia and globally," Tabcorp chairman Paula Dwyer said in a statement. "This transaction is expected to deliver significant value for both sets of shareholders, and material benefits to other key stakeholders including the racing industry, business partners, customers, and governments." The companies expects earnings to be boosted by at least $130 million a year through synergies. The deal, expected to be completed by mid next year, is already facing scrutiny from Australia's corporate watchdog, the Australian Competition and Consumer Commission (ACCC), which says it has "major concerns".