888 Holdings and The Rank Group mull over potential merger

Published on 25th July 2016 by Becky M.

Mergers, mergers, and more mergers seem to be the call of the day within the world of gambling in 2016. Keeping up this trend, it looks like there could be another major deal on the horizon, this is because the 888 Holdings and The Rank Group are mulling over coming together in what is being labelled as a “consolidation”. In a joint statement, it was announced that talks were indeed taking place, with the pair also considering making a big for rival brand William Hill as a result.

£5-billion Powerhouse Creation

What is making this news so buzz worthy is the fact that should this three-way deal materialise, a brand new £5-billion gambling powerhouse will be created. This new company will not just be a financial juggernaut; it will also be a company that has a presence in a number of major jurisdictions. Addressing the current situation, the joint statement reads, “The consortium sees significant industrial logic in the combination, through consolidation of their complementary online and land-based operations, delivery of substantial revenue and cost synergies and from the anticipated benefits of economies of scale, which will accrue to all shareholders”. The statement is clear that matters are moving forward, even if talks are currently only at the informal stage.

No Offer As Yet

Looking at the William Hill element of the equation, it has been pointed out that the company has yet to be approached with a takeover offer. However, it has been confirmed that there is interest in making a sale. Recently William Hill has fallen short of market expectations, with Gareth Davis (William Hill Chairman) saying, “Significant challenges remain and in the recent past online has not performed against expectations”. With a sale in mind, it is evident that it could provide the boost that William Hill need.With all the market movements taking place in the industry right now, the 888 Holdings, Rank Group, and William Hill merger rumblings may be worth keeping an eye on.