Bruised and battered...Crown is (finally) ready for Blackstone.
Background: Crown Resorts is Australia's biggest casino group. And it's been a rocky year in the press (Royal Commissions...money laundering...license issues...) for this crew.
What happened: The company received a takeover bid from US private equity firm Blackstone. After a lot of to-ing and fro-ing (and possibly one final arm wrestle)...Blackstone increased their offer to $13.10 per share.
What else: The price is right, team. Crown Resorts' board has finally recommended shareholders accept the bid. But hold ya 🐎🐎. The deal still needs to be approved by Australia's Foreign Investment Review Board (FIRB)
💡Before global companies can acquire local Aussie companies, they need to be approved by the big guns (aka FIRB).
💡FIRB looks at foreign investment proposals and advises the Treasurer whether to give a 👍 or 👎. Any deal that FIRB reckons is against national interest will be blocked.
💡Although FIRB approve most deals, there have been some pretty big ones that got cut in the 11th hour. Last year, the Treasurer rejected a Chinese company's $600 million acquisition of Lion Dairy and Drinks...and it was sold to Aussie-owned Bega instead. So don't hold ya breath!
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