Australian gambling regulators have cleared private equity giant Blackstone to take over ownership and management of Crown Resorts in Sydney and Melbourne, paving the way for completion of its planned $6.3bn buyout of the company.
The Crown board has backed Blackstone’s buyout offer, seeing it as a means for investors to exit what has become a volatile investment. And, on the other hand, analysts believe that new ownership can improve relationships and credibility with regulators who have been dissatisfied by previous corporate governance.
Crown’s casino in Sydney has been unable to operate any form of gaming since 2020, while the Melbourne resort remains under government supervision. Crown’s third casino is in Perth, Western Australia, and is also under state supervision. Regulators there are yet to approve Blackstone, after which a full takeover proposal can be presented to the Federal Court for final approval.