William Hill and Amaya have revealed that they have decided to put an end to their negotiations over an eventual merger. It was only last week when the the companies confirmed of the rumours that they have started talks over a potential agreement which, if successful, could have ended up in creating a industry giant with a market value of more than £5 billion.
Now, however, the British bookmaker now said that it has made a decision to quit merger talks with the Canada-based company after its major shareholders opposed to the deal. The betting operator also revealed that it has already informed Amaya for its decision.
William Hill revealed in its official statement that the board of the company had decided not to pursue further discussions with Amaya after consulting with its major shareholders. The bookmaker also revealed that it planned to focus primarily on the major priorities outlined by the company’s interim Chief Executive Officer Philip Bowcock.
In its statement, the UK-based leading bookmaker shared that trading had continued to be positive over the second six months of the year, considering the fact that the company had been focused on making its online performance better, especially when it came to mobile offerings. William Hill also kept its outlook for the expected 2016 operating profit.
The move of the UK-based bookmaker comes after its key investor – Parvus Asset Management – opposed to the potential merger at the end of last week, saying that the deal had “limited strategic logic” and if William Hill proceeded with the agreement, shareholder value would be destroyed.
The British betting operator has been involved in a series of unsuccessful merger talks lately, although it has been facing some difficulties due to increased competition and new regulatory taxes. Earlier this year, William Hill rejected a takeover approach from the consortium formed by 888 Holdings and Rank Group.
Amaya, on the other hand, also issued a separate statement to confirm the end of the merger negotiations. The company’s Chairman Divyesh Gadhia said that the Canadian company remained strong and growing. He also revealed that the company had reviewed some strategic alternatives in order to boost its shareholder value to the maximum and had make it to the conclusion that it would be better off as an independent company.
- Author
Olivia Cole
