# Breaking South African Casino News # Competition Commission Blocks Sun International’s Bid to Acquire Peermont Holdings **Posted on:** October 30, 2024 **Last updated on:** October 30, 2024 ![Renee Kingsley](https://southafricancasinos.co.za/images/renee-kingsley-small-logo.webp) Written by: [Renee Kingsley](https://southafricancasinos.co.za/author/renee-kingsley.html) ![Sun International Gives Thumbs Up to Women’s Empowerment in Eye- Opening Event](https://southafricancasinos.co.za/images/suninternational-womens-logo.webp)The South African Competition Commission has intervened to prevent Sun International’s intended acquisition of Peermont, the company behind [Emperors Palace](https://southafricancasinos.co.za/casino-resorts/emperors-palace-casino.html "Emperors Palace"). This decision stems from concerns that such a merger would substantially reduce competition within Gauteng and the broader South African casino market, with a potential 92% of casino ownership concentrated in the hands of just two companies. --- ## Reduced Competition and Market Concentration Sun International, which owns major gaming destinations like [Sun City](https://southafricancasinos.co.za/sun-city-casino.html "Sun City"), sought to purchase Peermont for R7.3 billion. However, the Competition Commission recommended to the Competition Tribunal that the merger be blocked. The commission argues that the buyout would dangerously restructure the national [gambling](https://www.southafricancasinos.co.za/ "gambling") landscape, reducing the number of key players from three to two and further concentrating ownership in an already tight market. According to the commission’s findings, post-merger, Sun International and Tsogo Sun would collectively own 92% of South Africa’s casino assets. This consolidation could stifle competition, especially given the limited availability of casino licences in regions like central Gauteng, where no new licences are available. "With two dominant players, the market would become highly concentrated, reducing the potential for competitive behaviour," stated the commission. ## Competitive Disadvantage and Market Dynamics The merger would allow Sun International to gain control over some of Gauteng’s most prominent casinos, including Peermont’s flagship Emperors Palace, located near O.R. Tambo International Airport. By adding this to its portfolio, Sun International would secure strategic locations, potentially edging out competitors like Tsogo Sun’s [Montecasino](https://southafricancasinos.co.za/casino-resorts/montecasino.html "Montecasino"), thereby weakening competitive forces within the region. The commission also raised concerns that the merger might encourage co- operative rather than competitive behaviour between Sun International and Tsogo Sun, the only remaining significant operators. This could lead to fewer promotions, reduced winnings, or lower-quality offerings, as both entities may feel less pressure to innovate or compete for patrons. ## Inadequate Remedies Proposed by Merging Parties Despite proposals for mitigative measures from Sun International, the commission determined these to be insufficient. "The remedies offered would not effectively restore the level of competition that would be lost if this merger proceeds," the commission noted, leaving the final decision in the hands of the tribunal. ## Background on the Key Players Sun International, valued at approximately R11.5 billion on the Johannesburg Stock Exchange, announced its intent to acquire Peermont in 2023, targeting completion by early 2025. The move was framed as an opportunity to expand its footprint and leverage Peermont’s successful business model, which includes properties across South Africa and Botswana, as well as online betting platform PalaceBet. Peermont’s crown jewel, Emperors Palace, offers a diverse entertainment experience with hotels, restaurants, a health spa, and a cinema, drawing high- net-worth guests from across Africa and abroad. Sun International's broader portfolio includes urban casinos nationwide and popular resorts like [Wild Coast Sun](https://southafricancasinos.co.za/casino-resorts/wild-coast-sun-casino.html "Wild Coast Sun"), The Maslow, and the iconic Sun City, along with its digital betting platform, SunBet. ## Outlook The Competition Tribunal will make the final call on whether Sun International’s bid can proceed, following the commission’s advisory. The decision could reshape South Africa’s gambling market, potentially impacting casino-goers and the competitive landscape across the nation. ## Schema ```json { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://southafricancasinos.co.za" }, { "@type": "ListItem", "position": 2, "name": "NEWS", "item": "https://southafricancasinos.co.za/news.html" }, { "@type": "ListItem", "position": 3, "name": "Competition Commission Blocks Sun International’s Bid to Acquire Peermont Holdings", "item": "https://southafricancasinos.co.za/competition-commission-blocks-sun-internationals-bid-to-acquire-peermont-holdings-1.html.md" } ] } ``` ```json { "@context": "https://schema.org", "@type": "Article", "mainEntityOfPage": { "@type": "WebPage", "@id": "https://southafricancasinos.co.za/competition-commission-blocks-sun-internationals-bid-to-acquire-peermont-holdings-1.html.md" }, "headline": "Competition Commission Blocks Sun International’s Bid to Acquire Peermont Holdings", "description": "The South African Competition Commission has intervened to prevent Sun International’s intended acquisition of Peermont, the company behind Emperors Palace. 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