Sun International pulls the plug on deal to buy Peermont
Sun International has axed plans for its R7.3bn takeover of South African rival Peermont following the Competition Tribunal scheduling a hearing too late for the deal to proceed with ‘deal fatigue’ cited by Sun International.
The deal involved all 11 of Peermont’s properties located across South Africa and Botswana, including Emperors Palace Hotel Casino Convention in Gauteng and the online sportsbook, PalaceBet. Collectively, the Peermont Group’s physical properties offer 3 349 slot machines, 152 gaming tables and 1 636 hotel rooms.
The Competition Tribunal had scheduled hearings for the Sun International and Peermont deal to be heard on October 2, 2025. It has ruled the proposed merger would substantially prevent and/or lessen competition in the provision of casino (gambling) services in South Africa and in central Gauteng. The merger would have significantly changed the structure of the national market by reducing the number of national casino operators from three to two. Post-merger, 92 per cent of the casinos operating in South Africa would be owned by only two firms, further increasing concentration in an already highly concentrated market.
In central Gauteng, the merger would have reduced the number of casino operators from three to two and will remove Emperors Palace (currently owned by Peermont) as an effective competitor to Sun’s Time Square and Carnival City as well as Tsogo Sun’s Montecasino.
Sun International said: “The Proposed Transaction received approval from shareholders in March 2024 and that in October 2024 the Proposed Transaction was referred to the Competition Tribunal, following the recommendation by the Competition Commission to the Competition Tribunal that the Proposed Transaction be prohibited in terms of section 14A (1)(b)(iii) of the Competition Act, No. 89 of 1998, as amended. The Competition Tribunal had the power to approve the Proposed Transaction despite the recommendation made by the Competition Commission.”
“The Competition Tribunal has now stipulated dates for its hearing and closing arguments, the latter
thereof being on 2 October 2025. The approval of the Competition Tribunal is a condition precedent to the Proposed Transaction, which currently has a longstop date of 15 September 2025. Accordingly, as the Hearing Date is after the Regulatory Longstop Date, the parties have mutually agreed to the immediate termination of the Proposed Transaction.”
The Competition Commission has denied it was the cause of delays in the hearing, and disputes between the parties on discovery evidence had caused delays.
Sun International CEO Ulrik Bengtsson said ‘deal fatigue’ had set in due to the time delay and was one the factors for the termination.
Bengtsson said ‘multiple approaches’ were made to the Tribunal ‘to bring forward the hearing date and closing arguments prior to the longstop date.’
