Gaming firm Tabcorp Holdings Ltd
(ASX:TAH) is reportedly in talks to acquire conglomerate Wesfarmers Ltd
(ASX:WES) pub business.
The Australian Financial Review is reporting that Tabcorp has been carrying out due diligence on the Coles pubs for about a month.
Tabcorp is set to lose approximately 32% of its revenue in 2012 when the new licensing structure is introduced into Victoria and is looking at ways to diversify its earnings.
According to the report Wesfarmers has been conducting a strategic review of the 96 pubs that it acquired as part of its $18 billion takeover of Coles in 2007.
Reuters says Wesfarmers pub business is estimated to be worth over $200 million.
Tabcorp is to spend an extra $100 million on the refurbishment of its Star City casino on top of the $475 million originally flagged.
Tabcorp pulled itself out of the red in 2009 to post a profit of $521.7 million.
