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Gala Deal Elevates Rank to No. 1 in UK

Newsdesk by Newsdesk
Wed 17 Apr 2013 at 03:09
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Rank Group’s clearance to buy UK rival Gala Coral will make it the country’s largest land-based operator.

After months of investigation, the UK Competition Commission has finally given its approval to the US$274.2 million deal, which will enlarge Rank’s casino portfolio by 19 operating properties and three currently inactive licenses.

The original agreement, concluded last May, would have seen Rank take over 23 Gala venues for total holdings equivalent to 44% of the national market, but that ran into trouble with the Office of Fair Trading, which referred it to the Competition Commission on fears that it would “substantially reduce competition in the casino sector”.

The commissioners gave their OK on the condition that Gala’s Aberdeen, Stockton-On-Tees, Bristol and Cardiff casinos were excluded and that Rank shed an inactive license in Edinburgh in exchange for a Gala venue in the Scottish city. Rank sold the Edinburgh license to an entity called Global Gaming Ventures.

In addition to its extensive online and mobile gambling products, the acquisition will have Rank ultimately owning 54 operating casinos and 12 non-operating licenses.

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Newsdesk

The IAG Newsdesk team comprises some of the most experienced journalists in the Asian gaming industry. Offering a broad range of expertise, their decades of combined know-how spans multiple countries across a variety of topics.

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