Sun International ends R7bn Emperor’s palace deal over competition concerns
by Kelebogile Matlou
Sun International has withdrawn its plan to buy Peermont Holdings, the company that owns Emperors Palace, in a deal worth around R7 billion. On Wednesday, 2 July 2025, Sun International said that it and Peermont had mutually agreed to cancel the deal. This happened because the Competition Commission said in October 2024 that the deal should not go ahead. The Commission believed the deal would reduce competition in the casino and gambling industry.
Although the Competition Tribunal had the final decision and could have approved the deal, the hearing was only set for 2 October 2025. This was after the deal’s final deadline, which was 15 September 2025. Sun International said, “both parties agreed to terminate the deal immediately.” This ended nearly two years of discussions.
image: E-play page
The company had first announced in December 2023 that it wanted to buy all of Peermont’s shares and loans. Peermont owns Emperors Palace near OR Tambo International Airport in Johannesburg. Sun International, which owns Sun City, said the deal would help it grow by adding more casinos and hotels. Peermont’s total value was about R7.3 billion, including debt. After subtracting debt and other costs, the deal was worth about R3.2 billion in September 2023.
Sun International believed the deal was a good opportunity, especially because Emperors Palace is one of the biggest casinos in the country. The Competition Commission said the deal would substantially prevent or lessen competition in South Africa, especially in Gauteng. It said that the merger would reduce the number of national casino operators from three to two.
image: Yogonet International
“92% of casinos in South Africa would be owned by just two companies,” said the Competition Commission. The Commission warned that Sun International would end up owning most of the big casinos in good locations. “In central Gauteng, the merger will reduce the number of casino operators from three to two and will remove Emperor’s Palace as an effective competitor.”.
The Commission was also worried that gamblers would lose out. With less competition, Sun International and Tsogo Sun could make changes without worrying about what the other does. “For instance, the two remaining casino operators in central Gauteng can reduce the level of winnings and reduce promotions.” Even though Sun International and Peermont suggested some solutions, the Commission still recommended that the deal be stopped.
