Star Entertainment (ASX:SGR) withdraws $10bn Crown merger

Company News

by Lauren Evans

Gambling and entertainment company The Star Entertainment Group (ASX:SGR) has informed Crown Resorts (ASX:CWN) that it has withdrawn its bid to merge the two businesses after an incident at Victoria's Royal Commission. If the proposal were successful, it would have created a $10 billion gambling giant.

The Star said, "[I]ssues raised at Victoria’s Royal Commission into Crown Melbourne have the potential to materially impact the value of Crown, including whether it retains the licence to operate its Melbourne casino or the conditions under which its licence is retained."

The Star believe substantial benefits could be unlocked by a merger but said, "uncertainty surrounding Crown is such that the Star is unable to continue at the present time with its proposal in the form as announced on 10 May 2021".

In response, Crown Resorts told the ASX it remained, "willing to engage with The Star in relation to a potential merger" on terms acceptable to both parties.

Shares in The Star Entertainment are trading 0.8 per cent higher at $3.58. 

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