Mon, 25 Jul 2016 | MERGER
Gambling firms 888 and Rank Group have approached William Hill to discuss a potential merger.
In response William Hill said it would “listen to and consider” any and all proposals, but conceded that it did not immediately see any “superior value” in combining the three companies.
Rank, the largest land-based casino chain in Britain, and online operator 888, said they saw “significant industrial logic in the combination”.
The merger approach was made in the days after James Henderson, William Hill's chief executive, was dislodged from his position after a run of profit warnings. He had only stepped into the post in August 2014, but had failed to solve the issues at the troubled online business.
In William Hill's latest trading update, turnover had dropped 11 per cent for its online division in the 17 weeks to 26 April 2016. Its shares have fallen by 21 per cent since the start of 2016, valuing the company at £2.7 billion.
To abide by UK takeover rules 888 and Rank have until 21 August to put in an offer or walk away. William Hill tried to buy 888 last year, offering £720 million, but 888 rejected the offer for being too low.
There has been consolidation among other players in the betting/online gaming industry, with Ladbrokes and Gala Coral agreeing a £2.3 billion merger, which won preliminary approvals in May. The enlarged group would be bigger than William Hill, which presently has the most shops in the UK. Meanwhile, Paddy Power and Betfair agreed to team up in September last year.
Other business merger news
The business for sale is a highly contemporary bar and bistro serving an array of high quality, locally sourced and freshly prepared food and drinks with a great environment. Great reputation in the area for food and live music. Has built up a reliab...
LEASEHOLD
Leading cleaning company in area. High-quality contracts and clientele. All equipment included in the sale. Well-established. Company has an excellent retention rate with a valuable team of staff. Huge scope for growth. The business is now for sale o...
LEASEHOLD
This is an excellent opportunity for an interested and committed buyer to take on a highly reputable e-commerce business which specialises in strapping and other fastening equipment. Excellent online reputation. Wide range of stock. Loyal commercial...
RELOCATABLE
|
29
|
|
May
|
Monsoon Accessorize close to administration | ADMINISTRATION
Fashion retailer Monsoon Accessorize is close to entering ad...
|
28
|
|
May
|
M&G completes purchase of Ascentric platform from Royal London | BUSINESS SALE
Asset manager M&G has completed the purchase of wealth manag...
|
27
|
|
May
|
Food-to-go supplier calls in administrators | ADMINISTRATION
Adelie Foods, one of Britain’s biggest suppliers of sa...
Sign up to receive our acquisition alert emails to get your FREE guide
|
06
|
|
Mar
|
William Hill gives up Australian business in £170m deal | DIVISION SALE
One of the world’s largest betting companies has sold ...
|
21
|
|
Feb
|
Broadcaster buys greyhound stadia from William Hill | BUSINESS SALE
A broadcaster specialising in the supply of live racing pict...
|
17
|
|
Oct
|
Ladbrokes-Coral sale clears way for £2bn merger | MERGER
Betting firms Ladbrokes and Coral have agreed to sell 359 be...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources