Sun International abandons Peermont acquisition

Sun International tells the Competition Tribunal it is abandoning its proposed R9.4bn acquisition of Peermont.

In December, shortly after the Competition Commission prohibited the deal, Sun International advised shareholders that since tribunal hearings were unlikely to occur before June, it intended to let its offer for Peermont lapse at the end of March.

The commission barred the deal because in the Gauteng casino market, Peermont owns Emperors Palace and Sun International owns Morula Sun.

Part of Sun International’s agreement to acquire Peermont involved the owner of Emperors Palace dropping a court case challenging Sun International’s application to move its Morula casino from Mabopane to Menlyn in Tshwane.

The commission said the transaction would prohibit competition in the central Gauteng casino market and it did not accept the "behavioural remedies" submitted by the parties.