As reported in The Cairns Post
THE Australian Competition and Consumer Commission is examining
the pending $269 million takeover of the Reef Hotel Casino in Cairns by the
Aquis Group. The ACCC is considering whether the proposal will reduce
competition in the marketplace.
Aquis is behind the proposed $8.15 billion mega-resort at Yorkeys Knob which
includes two casinos and eight hotels. As part of his strategy, Hong Kong billionaire Tony Fung has bid for the Cairns casino and its licence and is negotiating with the Queensland Government to split the licence to cover both the CBD site as well as the Northern Beaches property.
As well he has applied for one of two regional integrated resort developments and their gaming licences which the State Government is offering.
The Reef Hotel Casino has 38 gaming tables, 519 gaming machines, a VIP gaming room, a TAB and Keno. The Aquis Group is seeking approval for 750 gaming tables and 1500 electronic gaming machines.
An ACCC spokeswoman said the review was not unusual but would not be drawn on whether it had been requested by parties involved.
An Aquis spokesman said it was a standard investigation of the transaction.
“Aquis does not anticipate any issues that will affect the acquisition of
Reef Casino Trust,’’ he said.
The ACCC’s merger investigations branch acting general manager Tom Leuner said the authority was considering the proposed acquisition under section 50 of the Competition and Consumer Act 2010 (the Act).
“Section 50 of the Act prohibits mergers and acquisitions that substantially lessen competition in a market, or are likely to do so,’’ he said.
Notice of the review is on the ACCC website and in a letter Mr Leuner said: “The ACCC is seeking comments from market participants and interested parties to assist with its review of the proposed acquisition and would welcome any comments you have in relation to the competitive effects of the proposed acquisition.’’
The ACCC is asking for submissions and answers to 10 questions including the likelihood of the Aquis Resort being developed and whether “your view might change depending on whether or not Aquis acquired the Reef Casino’’, and competition between the Reef Casino and other forms of gambling in Cairns and other casinos. Other questions include: “If the proposed acquisition does not proceed, to what extent is the Aquis Resort likely to compete with the Reef Casino and other casinos in Queensland, Australia and overseas.
“Please comment on the extent to which the opening of the Aquis Resort would affect the ongoing viability of the Reef Casino (assuming that Aquis Group did not buy the Reef Casino).
The ACCC’s merger investigations branch acting general manager Tom Leuner said the authority was considering the proposed acquisition under section 50 of the Competition and Consumer Act 2010 (the Act).
“Section 50 of the Act prohibits mergers and acquisitions that substantially lessen competition in a market, or are likely to do so,’’ he said.
Notice of the review is on the ACCC website and in a letter Mr Leuner said: “The ACCC is seeking comments from market participants and interested parties to assist with its review of the proposed acquisition and would welcome any comments you have in relation to the competitive effects of the proposed acquisition.’’
The ACCC is asking for submissions and answers to 10 questions including the likelihood of the Aquis Resort being developed and whether “your view might change depending on whether or not Aquis acquired the Reef Casino’’, and competition between the Reef Casino and other forms of gambling in Cairns and other casinos. Other questions include: “If the proposed acquisition does not proceed, to what extent is the Aquis Resort likely to compete with the Reef Casino and other casinos in Queensland, Australia and overseas.
“Please comment on the extent to which the opening of the Aquis Resort would affect the ongoing viability of the Reef Casino (assuming that Aquis Group did not buy the Reef Casino).
“Please explain any significant barriers that a casino operator
would face in seeking to establish a viable new casino in Queensland or
Cairns.’’ Submissions close on May 1.
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