R9,4bn acquisition of Emperors Palace in doubt

Sun International announced on Thursday that its proposed acquisition of Peermont, which owns nine casino resorts, including Emperors Palace, has hit a regulatory hurdle, The Citizen reported.

A statement from the hotel and casino operator said the Competition Commission had recommended that the proposed transaction be prohibited in terms of the Competition Act.

Sun International announced in March that it had agreed to buy Peermont for R9,4 billion as part of its strategy to enhance and leverage its existing portfolio and to seek new growth opportunities.

In Thursday’s statement, Sun International added that it had yet to receive the detailed report on the Competition Commission’s recommendation and therefore had yet to assess its options on the transaction, which is subject to regulatory approval being given by the end of March 2016.