Sun International cancels $400M Peermont deal over regulatory roadblocks
Sun International has called off its planned R7.3 billion ($400 million) acquisition of Peermont. The company blames the cancellation on regulatory delays and what it describes as “deal fatigue.” This choice signals a critical moment for the South African gaming and hospitality company as it seeks to widen its portfolio through targeted acquisitions.
Delays with regulations and timing clashes
The deal was supposed to close once it cleared various regulatory steps and hearings. However, a hearing planned by the Competition Tribunal on 2 October 2025 occurred too late to meet the legal requirements. The Competition Tribunal plays a vital role in approving mergers and acquisitions under South African law. It was a required step to make the transaction possible.
The agreement had a longstop date of 15 September 2025, which made the Tribunal’s timeline miss the deadline.
“Accordingly, as the hearing date is after the regulatory longstop date, the parties have agreed to the immediate termination of the Proposed Transaction,” Sun International said. This choice highlights how important regulatory timing is in mergers and acquisitions in controlled sectors like gaming.
Conflicts and holdups
The Competition Commission, tasked with initial probes and offering recommendations, denied being responsible for the holdups. It stated that the delays arose from conflicts between the parties regarding evidence sharing. The Commission pointed out that earlier planned hearings, like those set for 19-30 May 2025, could not go ahead because the parties were still disputing the discovery evidence.
Recently appointed Sun International’s CEO, Ulrik Bengtsson, mentioned that “deal fatigue” became an issue because of the lengthy delay, which affected everyone involved. According to Ulrik, “considering the impact this was having on both groups,” the delays and the Tribunal’s failure to conduct hearings or finalise arguments before the longstop date contributed to the deal being called off.
Rising worries about regulatory holdups
The delays in this case are not unusual. Many have criticised the Competition Tribunal because it takes a long time to make decisions on big mergers and acquisitions. Examples include Vodacom buying Maziv and Blue Label Telecom taking over Cell C, where it took up to nine months for the Competition Authorities to decide.
claims they handled 99% of mergers filed from April to December 2024 within the required timeline. Still, these drawn-out processes, in some instances, have drawn closer scrutiny and complaints from industry professionals.
Steps to speed things up
Bengtsson stated that “multiple approaches” were made to the Tribunal to push up the hearing date and finish closing arguments before the longstop date. He explained that “given the busy workload of the Tribunal, it was not feasible or possible for them to do so.” The large number of cases and backlog seem to have slowed the Tribunal’s ability to meet desired timelines, which played a part in the deal falling through.
Background and market context
The acquisition plans were announced over 18 months ago, with the first circular sent to shareholders on 5 February 2024. The Competition Tribunal received the case in October 2024, scheduling a hearing that was intended to take place approximately 12 months later.
, offering over 1,600 hotel rooms. Sun International saw them as a key acquisition opportunity. Sun International operates several well-known spots in South Africa, such as Sun City, The Table Bay Hotel, and Time Square. The company’s holdings cover a wide range of hospitality and 바카라 ventures across the country.
Changing industry trends
Prior worries about competition issues tied to this deal have eased. The rise of online gaming during and after COVID-19 played a significant role in this. With the online gaming boom, the risks of reduced competition or adverse effects on public interest have become less alarming. Such concerns are typically looked at under the .
Sun International’s choice to cancel the acquisition shows how crucial it is to have quick regulatory processes. It also shows the struggles companies face when trying to grow during government-related delays. Now that Sun International has ended this effort, only time will tell how upcoming dealings with regulators will shape their plans to expand in South Africa’s competitive market.
