Sun International decided to stop its R7.3 billion ($400 million) plan to buy Peermont. The company said regulatory delays and what it called “deal fatigue” caused them to cancel. This situation marks a turning point for the gaming and hospitality company from South Africa because they try to expand using targeted acquisitions.

Delays with Regulations and Timing Clashes

The process for this deal needed several regulatory hearings and approvals first. They postponed the merger until the Competition Tribunal hearing, fixed for 2 October 2025, but that schedule could not meet the legal rules. Approval of such mergers and acquisitions under South African law depends much on the Competition Tribunal. Sun International had to get this approval to finish the acquisition.

The deadline for the agreement was 15 September 2025, so the Tribunal’s hearing date did not let the deal to close on time. The company explained, “Since the hearing date is after the deadline for regulatory approval, both parties chose to end the proposed transaction immediately.” This outcome displays the impact that regulatory schedules can have on mergers and acquisitions, especially in sectors like gaming.

Conflicts and Holdups

The Competition Commission looks into deals first and provides recommendations, and it explained that it was not the reason for the delays. The Commission indicated that arguments between the companies about sharing evidence caused these holdups. It said the hearings first scheduled for 19-30 May 2025 did not happen because both parties were still disagreeing about what evidence to disclose.

Ulrik Bengtsson, who recently became CEO of Sun International, talked about “deal fatigue,” saying the long wait affected everyone. According to him, “the effect this delay had on both sides” and the Competition Tribunal not holding hearings or finishing arguments before the deadline caused the cancellation.

Rising Worries about Regulatory Holdups

These sorts of slowdowns are common. Some people in the industry have criticized the Competition Tribunal for taking too long with big mergers like Vodacom’s purchase of Maziv and Blue Label Telecom’s acquisition of Cell C, where decisions took as much as nine months. Even though the Tribunal states it decided 99% of mergers filed from April to December 2024 on time, lengthy processes in certain cases have brought more questions and concern from people in the field.

Steps to Speed Things Up

Bengtsson mentioned that “multiple approaches” were made to the Tribunal to make the hearing date earlier and finish arguments before the deadline. He said, “due to how full their schedule is, the Tribunal could not make this possible.” The Tribunal had too many cases and an existing backlog, which reduced its speed and was one reason the deal failed.

Background and Market Context

The companies first announced the acquisition more than 18 months ago, with a circular sent to shareholders on 5 February 2024. The Competition Tribunal got the case in October 2024 and planned the hearing almost a year later. Peermont runs 11 sites such as hotels, gaming centres, and casinos with over 1,600 hotel rooms. Sun International viewed Peermont as a strong acquisition target. Sun International owns famous hotels and resorts in South Africa such as Sun City, The Table Bay Hotel, and Time Square. They operate a variety of properties in both the hospitality and casino industries.

Changing Industry Trends

At first, there were concerns that this deal would affect market competition, but those concerns are less now. The increase in online gaming following COVID-19 made a big difference here. As online gaming grows, the worry about less competition and public interest problems gets smaller. The Competition Act looks into these kinds of issues.

By stopping the acquisition, Sun International has shown how necessary it is for regulatory processes to be quick. This move shows how companies can struggle with delays from government bodies when they want to grow. With this acquisition now cancelled, future relationships with regulators will play a role in Sun International’s plans for growth in South Africa’s competitive industry.