Blackstone's Crown Takeover Edges Closer With License Approvals -- Update
June 08 2022 - 9:26PM
Dow Jones News
By Stuart Condie
Blackstone Inc.'s $6.3 billion takeover of Australia's Crown
Resorts Ltd. edged closer to approval after regulators in two
Australian states cleared the U.S. private-equity giant to operate
a casino.
Casino regulators in New South Wales and Victoria states had
approved the takeover of ASX-listed Crown by Blackstone, Crown said
Thursday. It said regulatory approval in Western Australia state
was still required.
Blackstone already has real-estate assets in Australia and
gambling businesses in other countries. It first offered to buy
Crown in 2021 for 11.85 Australian dollars (US$8.52) a share and
raised its offer multiple times until Crown accepted a A$13.10 a
share cash offer in February 2022.
The NSW Independent Liquor & Gaming Authority and The
Victorian Gambling and Casino Control Commission in separate
statements on Thursday said Blackstone had agreed to a range of
operational changes recommended by inquiries into Crown.
"Our approval comes with stringent conditions which balance
delivering stronger controls on the casino and ensuring it
continues to be the flagship casino in Australia," Victoria's
casino regulator said.
"We will take action should any of these conditions not be met
by either Blackstone or Crown," it said.
The opening of Crown's new casino in Sydney in 2020 was delayed
after an inquiry in NSW found that the company's bank accounts were
used to launder money, and that it improperly worked with so-called
junket operators in Asia to bring in gamblers.
A separate inquiry in Victoria found that Crown engaged in
illegal and dishonest behavior. The investigating commission said
in 2021 that closing the casino in Melbourne's downtown would have
negative economic effects and recommended a suite of changes
including additional oversight and regular reports to
regulators.
Shares in Crown were 1.8% higher at A$12.98.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
June 08, 2022 21:11 ET (01:11 GMT)
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