Ladbrokes and Coral brands’ owner is examining the European assets of William Hill, sharing it has taken into consideration the possible takeover of some parts of the British bookmaker that was acquired by Caesars Entertainment earlier in 2021 in a £2.9-billion deal.
The British gambling giant Entain, which also owns the Partypoker and bwin brands, has been considering a possible takeover bid for William Hills’ business outside the US as part of something that has been considered in what is likely to be categorised as a benchmarking exercise. According to sources familiar with the situation, the US investment manager firm Apollo Global Management is the one that is most likely to prevail in the competition for the assets that are expected to bring William Hill’s owner about £1.2 billion.
Earlier this year, the British gambling company William Hill was acquired by Caesars Entertainment in a takeover deal estimated at £2.9 billion. After the takeover was completed, the US casino giant revealed that it would seek options to get rid of the European assets of William Hill, including the brand’s 1,400 high-street betting shops in the UK and its online business.
An auction for the British bookmaker’s European business started in May and first-round offers are expected on July 6th.
Several Gambling Companies Interested in Taking Over William Hill’s European Business
At first, Apollo Global Management has entered into talks with Caesars Entertainment to purchase the whole of the British gambling company. Last autumn, it performed diligence that, according to experts, has provided it with a significant head start on its competitors.
People with knowledge of the matter have revealed that Caesars Entertainment finds Apollo’s offer appealing because it will help the casino operator to dispose of the parts of William Hill’s business that it does not find valuable. On the other hand, rumour has it that Apollo Global Management plans to put William Hill’s business at a centrepiece of a pan-European business that will also include Italy-based Lottomatica.
Reportedly, the owners of another large British gambling company – 888 Holdings – are willing to make a takeover offer for the European business of William Hill, with the operator’s executives being pushed to make an offer. However, insiders familiar with the process have shared their concern that 888 Holdings would find it hard to match Apollo Global Management’s bid.
According to reports, Betfred’s owner is also interested in purchasing the high-street betting shops of William Hill across the UK. Unnamed sources did not rule out the possibility of him joining efforts with 888 Holdings or even Entain in order to win the assets. However, Betfred is also likely to face some hurdles associated with competition rules. The operator already owns about 1,600 sports betting shops in the UK, so the addition of the ones owned by William Hill would give the company almost 50% of the retail gambling market in the country.
- Author
Olivia Cole
