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
This well-established business in Suffolk is renowned for providing bespoke hydraulic, electric, and mechanical systems across various industries, with end-to-end solutions and a strong reputation for quality and reliability.
This well-established Buckinghamshire-based wholesale catering supplier offers a diverse range of fresh produce, dairy, and catering essentials to sectors such as hospitality and healthcare.
This well-established Essex-based business offers a comprehensive suite of bespoke luxury furniture services, from design to installation, catering primarily to private clients and developers.
04
|
Jul
|
East Midlands furniture manufacturer ceases trading | ADMINISTRATION
Andrew Paul Furniture Limited, a major furniture manufacture...
04
|
Jul
|
Yorkshire law company Ison Harrison merges with Skipton firm | MERGER
Ison Harrison, an employee owned law firm based in Yorkshire...
04
|
Jul
|
£37m-turnover pet food firm falls into administration | ADMINISTRATION
Kennelpak Limited, a private equity-backed pet products comp...
07
|
Sep
|
888 Holdings confirms “advanced discussions” to acquire William Hill’s European business | DIVISION SALE
Betting firm 888 Holdings has confirmed that it is in &ldquo...
04
|
May
|
William Hill betting chain up for sale | BUSINESS SALE
William Hill has been put up for sale by American owner Caes...
06
|
Mar
|
William Hill gives up Australian business in £170m deal | DIVISION SALE
One of the world’s largest betting companies has sold ...
Business Sale Report is the complete resource for finding genuine acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.