Problems for Novomatic’s casino acquistion
August, 14th 2015
It seems like the acquisition of Casinos Austria through Novomatic is causing big problems. In terms of figures, Novomatic owns already 39.5% of the shares and is controlling over 55% already. The competition authority has showed its concerns about this deal. Theodor Thanner, the chief of competition authority, has made clear that he will not wave through this proposition but it needs some investigation. The fusion is critical because of the high market share of the casinos. An investigation is necessary in this case. The court will have five months to investigate, with a possible deadline extension of six months.
It never occurred that a cartel court was prohibiting a coalition completely but it can definitely create restrictions. This could be the selling of certain business parts for example. Not only the Austrian authority but also the EU is included in those decisions.
Because of the fact that Novomatic will exceed the revenue of 5 Billion EUR, it has to be registered at the EU commission. They will investigate this case further. Due to the fact that the coalition is happening mainly in Austria, the BWB can place a so-called reference proposal and claim power to deal with this case.