After just 5 years together, Tabcorp and Tatts look set to divorce
👉 Background: Tatts is the company that previously owned major lottery operations in Australia (Powerball, Keno). Tabcorp is behind the TAB, ya local betting shop.
👉 What happened: In December 2017, these two companies merged. It worked well for Tatts... but not-so-well for TAB, with the gaming business dropping off by around 20%.
👉 What else: Now, less than five-years after their marriage, the two companies are headed for divorce.
💡 Although company mergers are paved in good intentions, they're not always as successful as anticipated.
💡 In fact, 60% of M&A deals fail. It could be because the acquirer often pays overs - or a significant premium - to acquire the new business... or, because the acquirer is stepping outside its core business.
💡 Although M&A is always announced with major fanfare... just remember, these deals actually have a better chance of failing than succeeding.
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