James Packer's Crown will not be making a play for fellow Australian casino operator Echo Entertainment any time soon, the company stated.
Echo Entertainment, which was created with the demerger of Tabcorp’s wagering and casino business divisions in June, controls Star City Casino in New South Wales, as well as three casinos in Queensland.
The demerger has fueled rumours that Echo’s casino assets are ripe for takeover, with speculation centring on a possible acquisition by Crown, which operates integrated gaming resorts in Melbourne and Burswood, as well as the Aspinalls Club in the UK. It also holds a significant interest in Macau-based gaming group Melco Crown Entertainment.
Crown confirmed in June that it holds a 4.9 per cent stake in each of the newly demerged Tabcorp and Echo companies, further suggesting that it will seek to expand in its domestic market through the acquisition of a larger share in one of its chief rivals.
However, the company responded to reports in the media suggesting as much that it acquired the stake on Tabcorp before the demerger.
“Crown has no current intention of increasing its interest in either company,” Crown said.
Whether or not the company will seek to make a more sizeable acquisition of Echo shares in the future remains to be seen but with interest from other casino groups and private equity firms expected, it may not have everything its own way.
