Tabcorp has revealed plans to sell off its Odyssey gaming machine monitoring business to help ease concerns over its proposed merger with Tatts Group.
Announced in October of last year, the two Australian companies plan to merge and create a combined business worth approximately A$11.3 billion (€8.1 billion/US$8.5 billion).
Although Tabcorp and Tatts are keen to press ahead with the planned merger, the Australian Competition and Consumer Commission (ACCC) recently raised a host of concerns over the deal, stating that the merger is “likely to substantially lessen competition”.
In response, Tabcorp has said that it will investigate the sale of its Odyssey arm, which it acquired as part of its A$128 million purchase of Intecq last year, adding that a number of parties have already expressed an interest in taking over the business.
“Since it lodged its formal clearance application with the ACCC in November, Tabcorp has worked closely with the ACCC to assist it with its inquiries,” Tabcorp said in a statement.
“Tabcorp believes that the proposed combination with Tatts will deliver value for both sets of shareholders, as well as significant benefits to other stakeholders across Australia including the racing industry, venue partners, customers and governments.
“Tabcorp will continue to review the SOI and assess its options to maximise the prospects of receiving competition approval for the transaction.”
The planned merger also remains subject to approval from shareholders and the Federal Court.