South Africa’s Competition Commission Opposes Sun International’s Merger with Peermont Holdings
South Africa’s Competition Commission has advised against the acquisition of Peermont Holdings by Sun International, citing concerns that the merger would severely limit competition within the casino sector. The proposed consolidation could lead to a substantial reduction in market diversity, especially in central Gauteng, raising issues about market concentration and weakened competition among major casino operators.

Regulatory Concerns in the Casino Market
The Commission highlighted that the merger could significantly alter the competitive landscape of the South African casino industry, decreasing the number of national casino operators from three to two.
This shift would result in 92% of the country’s casinos being controlled by only two firms, intensifying concentration in an already limited market. The difficulty of new operators entering the market further exacerbates these concerns, as casino licenses are scarce, particularly in central Gauteng, where no unallocated licenses are available.
Competitive Advantage and Market Dominance
The Commission noted that the merger would grant Sun International (SISA) an advantageous position, particularly in central Gauteng.
It stated, “In addition, the merger will result in SISA owning and operating a number of casinos located in prime locations which will give SISA a significant competitive advantage over its competitors.”
This acquisition would eliminate Emperors Palace as an effective competitor to SISA’s existing properties, including Time Square and Carnival City, as well as to Tsogo Sun’s Montecasino, potentially reducing competitive dynamics in the region.
Concerns of Cooperative Behavior
Another key issue raised by the Commission is the potential for cooperative behavior between the two remaining casino operators, SISA and Tsogo Sun, in central Gauteng.
“The Competition Commission is also concerned that the merger is likely to result in the two remaining casino operators (SISA and Tsogo Sun) in central Gauteng behaving co-operatively instead of competing with each other,” it explained.
This could manifest in practices such as reduced winnings or fewer promotional offers, as there would be no competitive incentives to counter such moves.
Pending Decision by the Tribunal
The remedies proposed by the merging parties were deemed insufficient by the Commission, which concluded that these measures do not adequately address the competition concerns raised.
The final ruling on the proposed merger now awaits the decision of the Competition Tribunal, which will assess the Commission’s recommendations and the arguments from both sides to determine the outcome of the transaction.
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