Blackstone, a real estate and private equity firm, has officially confirmed that it completed Crown Resorts’ acquisition. With this development, Blackstone will take over three premium casino resorts, located in Sydney, Melbourne, and Perth. The news comes just days after Crown Sydney was granted a conditional license.
The Acquisition is Blackstone’s Largest Investment in the Pacific Region
The new acquisition, which is set to breathe new life into the casino brand, is Blackstone’s largest investment to date in the Asia Pacific region. Blackstone stated that it will work with the United Workers Union, partner unions, and the Crown employees to make sure that the properties in the said regions are transformed into “world-class entertainment destinations.”
Alan Miyasaki, Blackstone’s head of real estate acquisitions, shared his thoughts by saying that the company is proud to become Crown’s new owner and bring its expertise in hospitality to lift the brand to a whole new level.
He added that Blackstone originally invested in Crown two years ago as it saw the massive potential of the brand and its people. Miyasaki ended by saying that Blackstone is eager to work with everyone at Crown and apply its experience to make Crown “unique for employees, local communities and visitors.”
Crown Resorts’ CEO, Steve McCann, stated that Crown emerged as part of the Blackstone family. He also noted that Crown has gone through a lot of changes in the recent period after the brand was under a lot of scrutiny by regulators. McCann acknowledged the fact that with Blackstone’s leadership, Crown has the potential to “deliver world-class entertainment” and a responsible gambling environment.
As a concluding matter, McCann noted that tourism in Australia is entering a recovery phase and that he believes that the trend will continue, which is good. That way, Crown will be able to cement its spot as one of the world’s leading IR operators.
Blackstone’s Acquisition Was Backed by Australia’s Regulators
Crown Resorts was purchased by Blackstone for a price of $6.5 billion, or around $9.29 per share. After the deal was struck, both parties entered into an implementation deed and needed the green light from Australia’s regulators.
Towards the end of May, all investors at Crown approved the takeover and at the start of June, both the New South Wales Independent Liquor and Gaming Authority (ILGA) and the Victorian Gambling and Casino Control Commission (VGCCC) greenlit the takeover.
Shortly after these two regulators gave their consent, Western Australia also backed Blackstone’s purchase, however, the state regulator issued a warning to the company that it will face a lot of regulatory headwinds.