Dreams SA and Enjoy have cancelled their plans to merge the two Chilean casino operations.
Stakeholders were informed of the merger’s cancellation via Chile’s Financial Markets Commission, with the two casino operators now remaining separate entities.
In February last year, the terms of the merger were agreed upon. Dreams shareholders would control 64 per cent of the combined operations, with Enjoy controlling the remaining 36 per cent.
However, the merger failed to pass Chile’s competition authority, the FNE, which flagged concerns over the two parties taking full control of the country’s municipal casinos.
To appease the FNE’s concerns, Dreams and Enjoy had offered to sell the Enjoy Santiago property, but the sale was rejected as the authority began a 90-day anti-trust investigation into the merger to determine if dealmakers had colluded to secure certain outcomes.
“The parties have agreed to terminate the merger agreement in accordance with its stipulations and not to continue with the operation,” Dreams told the CMF.
Enjoy noted it had ceased talks with Dreams and will be focusing on its South American market expansion instead with the planned launch of its proprietary ‘localised platform’ customised for Brazil’s anticipated sports betting and online gambling market.