By Stuart Condie
SYDNEY--Star Entertainment Group Ltd. withdrew its indicative proposal to merge with Crown Resorts Ltd. over concerns its rival could lose its casino license in Melbourne.
Star on Friday said issues raised by Victoria state's quasi-judicial inquiry into Crown's suitability to hold a license generated too much uncertainty for the proposal to proceed. It also said it had limited engagement with Crown on the proposal.
Star said it continued to believe substantial benefits could be unlocked by a merger and that it was open to exploring potential value-enhancing opportunities with Crown. Star estimated that the combined company could reduce annual costs by up to A$200 million when it made the proposal in May.
Write to Stuart Condie at [email protected]