10 May, 20201 | By Bronwen Largier
The Star Entertainment Group has put a $12 billion proposal to merge with Crown Resorts on the table, as Crown faces down royal commissions in two states and restrictions to its operations while continuing its battle to be approved for a casino licence at its newest property in Sydney.
The proposed deal would bring together seven properties across four Australian states under one entity.
According to The Star’s statement on the ASX this morning, “It would provide access to exciting growth opportunities only available through the merger across marketing and events, digital and technology initiatives, investment in online capabilities and optimisation of a combined loyalty program to deliver enhanced value for members.”
The Star’s Chairman John O’Neill AO said the merger would create “a compelling investment proposition and one of the largest and most attractive integrated resort operators in the Asian Pacific region”.
The proposal comes at the same time as a raised bid from US investment company Blackstone of $8.4 billion, according to the ABC. Blackstone, which already owns a 10 percent stake in Crown, put forward a bid worth approximately $8 billion in March.