A few days after William Hill officials dismissed the sweetened Rank Group-888 Holdings takeover bid, the consortium announced that no further efforts towards bookmaker’s acquisition were to be made.
Rank Group and 888 submitted bids for the acquisition of the casino and sports betting giant on August 8th and August14th. The three-way deal would have resulted in the establishment of the largest multi-channel gambling operator in the United Kingdom and a competitive gambling company on a global scale.
However, William Hill officials regarded the first £3.6 billion offer as “highly opportunistic”, “ill-conceived” and said that it considerably “undervalued the business” and therefore there was no point in entering into talks. The 888-Rank Group consortium revised the offer, but once again it was rejected.
The main reason why 888 and Rank Group were seeking a merger was the intensified competition as well as the tighter regulations UK gambling providers are facing. A series of mergers between large sports betting and casino companies as well as the fast development of the mobile gambling sector made them seek ways for reducing the spendings and remaining competitive.
William Hill, considered the largest UK bookmaker, can lose its leading positions on the market because of the merger between Ladbrokes and Gala Coral. Although it tried to adjust to the fast-changing gaming environment and launched mobile and in-play sports betting options, the apps did not manage to retain punters.
Yet, William Hill officials noted the consortium decision to discontinue pursuing a merger and said that they had already developed a plan expected to lead to digital and international growth.
Itai Frieberger, the 888 Chief Executive, said that the consortium was disappointed by the reluctance of William Hill officials to embrace the idea of a combined business. He went on to say that if the deal had been materialized, it would have led to strong revenue, diversification and cost synergies that would be beneficial to all stakeholders.
Henry Birch, a Chief Executive of Rank Group expressed his gratitude to the stakeholders for the support throughout the entire bidding process.
Speaking of unsuccessful deals William Hill and 888 were engaged in, back in February 2015, William Hill submitted a bid for the acquisition of 888, but it was rejected as the 888 owner considered the £700 million offer too low. Then, 888 attempted to acquire bwin.party, but the latter was purchased by GVC Holdings for the amount of £1.12 billion.
- Author
Olivia Cole
