The merger between Enjoy and Dreams has been placed on hold by Chile’s National Competition Authority (FNE). The FNE stated that it would require another 90 days to investigate and analyze the merger’s market consequences. The FNE stated that the inquiry began on May 3, 2022, after it was discovered that the merger could limit market competition and have a negative impact on consumers and rival casino operators.
According to the FNE, the new operation “could generate some unilateral risks, both exploitative to consumers and exclusionary of other casino operators, as well as coordinated risks between market operators, by providing the merged entity with the ability and incentives to reduce the quality of certain competitive variables in gaming services,” according to the statement.
As a result, the Chilean antitrust regulator decided to prolong its investigation for up to another 90 days, claiming that if the merger goes through, “it could considerably reduce competition.”
The inquiry procedure, in turn, began on May 3, 2022, “with the goal of examining the impact of the merger on free competition in the markets associated to the operation of casinos,” according to the FNE. They further announced that their work had focused on the risks associated with the awarding of future casino licences as well as competition within the industry.
Any third party with an interest in the merger between Enjoy and Dreams, whether suppliers, competitors, or customers, could come forward with background information for the investigation within 20 business days, according to the FNE.
Enjoy S.A. and Dreams S.A., Chile’s two major casino operators, announced in January that they had finalized their deal to consolidate their businesses. The united company, which will be known as “Dreams Enjoy SA,” will reinforce its position as a leader in the Latin American casino market, with operations in Chile, Uruguay, Peru, Argentina, Colombia, and Panama, according to a presentation to shareholders. If approved Enjoy will be the legal surviving entity. Dreams’ shareholders will receive approximately 64 per cent of the merged company, while Enjoy’s shareholders will retain the remaining 36 per cent.