PointsBet has announced that it has officially received written approval from the Australian Federal Government regarding the proposed acquisition of Mixi, marking another critical step forward for the transaction. According to the government's confirmation, the acquisition complies with the 1975 Foreign Acquisitions and Takeovers Act, meaning that the merger plan can continue to proceed.
Nevertheless, the transaction still requires final approval from the regulatory authorities in Ontario, Canada. No timetable has been announced yet. This deal, which first surfaced in November last year, was initially denied by PointsBet, but the company finally confirmed the acquisition plan in February 2024.
To facilitate the completion of the transaction, Mixi last week raised its original acquisition offer of $223.2 million to $264 million. This move is considered an important strategy to increase the probability of a successful acquisition.
However, PointsBet has also faced significant challenges recently. The Australian Communications and Media Authority (ACMA) recently fined the company AU$500,800 (approximately US$326,000) for sending over 800 promotional messages between August and November 2023 that violated anti-spam laws and self-exclusion regulations.
Meanwhile, another bidder, Betr, is also in the fray. It is reported that PointsBet initiated due diligence on Betr's acquisition proposal last month.
Despite the competition and controversy, with the Australian government's official clearance, the scales of the transaction seem to be gradually tilting towards Mixi. PointsBet also confirmed through an official statement that its acquisition has received the latest regulatory progress.
