{"id":127711,"date":"2022-06-09T02:53:46","date_gmt":"2022-06-09T02:53:46","guid":{"rendered":"https:\/\/fin2me.com\/?p=127711"},"modified":"2022-06-09T02:53:46","modified_gmt":"2022-06-09T02:53:46","slug":"blackstone-closes-in-on-6-3-billion-crown-bid-after-australia-approvals","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/blackstone-closes-in-on-6-3-billion-crown-bid-after-australia-approvals\/","title":{"rendered":"Blackstone closes in on $6.3 billion Crown bid after Australia approvals"},"content":{"rendered":"
(Reuters) -Australian gambling regulators have cleared private equity giant Blackstone Inc to run the troubled casinos of Crown Resorts Ltd in the country\u2019s two largest cities, a crucial but largely expected step in its $6.3 billion buyout.<\/p> The Sydney-listed target that is 37% owned by billionaire James Packer has been under pressure for years since damaging inquiries found it enabled money laundering, while COVID-19 lockdowns and border closures battered its profit and shares.<\/p>\n Crown has since backed Blackstone\u2019s buyout offer as a way for investors to exit what has become a volatile investment, while analysts have said the sheen of new ownership might speed up efforts to show regulators it has overhauled its governance.<\/p>\n The new approvals, though widely expected, remove concern of the buyout facing more regulatory headaches in Crown\u2019s two main markets. Already Crown\u2019s A$2.2 billion ($1.58 billion) Sydney casino has been banned from taking bets since opening in 2020, while its Melbourne resort is under government supervision.<\/p>\n Regulators in Perth where Crown operates its third casino, which is also under state supervision, have not made a decision about Blackstone.<\/p>\n In a statement, Crown said only that Blackstone received two regulator approvals and was awaiting a third. Blackstone did not immediately respond to a request for comment.<\/p>\n Crown\u2019s share price rose nearly 2% to A$12.99 in Thursday morning trade, against a 1% decline in the broader market. It is hovering just below Blackstone\u2019s A$13.10 offer, signalling growing expectation of the buyout going ahead.<\/p>\n \u201cThese approvals are a key step … to ensure Crown Sydney is able to fully meet its undertakings for major operational, governance and structural reforms,\u201d said Philip Crawford, chair of the New South Wales Independent Liquor & Gaming Authority, which has suspended Crown\u2019s Sydney gambling licence.<\/p>\n \u201cBlackstone has been required to demonstrate the highest standards of probity,\u201d he said in a statement.<\/p>\n \u201cThis commitment is vital to ensure Crown Sydney is free from criminal influence and properly manages the risks of harm associated with casino activities,\u201d Crawford said.<\/p>\n The Victorian Gambling and Casino Control Commission, which oversees the Melbourne casino, said in a statement its approval included the condition that a privately owned Crown continued to follow stock exchange governance rules.<\/p>\n Crown shareholders have endorsed the takeover but the deal must be approved by the federal court, which will not set a hearing date until Perth\u2019s regulator greenlights Blackstone.<\/p>\n ($1 = 1.3949 Australian dollars)<\/p>\n