Rank may have to sell 6 casinos to acquire Gala
It is believed that gaming group, Rank might have to sell six of its casinos in the UK in order to get a clearance from the Competition Commission for acquiring rival operator, Gala Coral.
Rank had said in May that it has agreed to pay 205 million pound to acquire casino business of private equity-owned Gala Coral. The acquisition would add 23 UK casinos to the company's existing network of 35 casinos in the UK and make it the biggest casino operator in the country.
The Commission said in a provisional report said that the after the deal, Rank and Genting will be the only two major casino operators in Britain. Malaysia's Guoco Group has a majority stake in Rank while Genting is also owned by a Malaysian entity. The report also said that the merger would damage competition in Aberdeen, Liverpool, Stockton-on-Tees, Bristol and Cardiff, as well as Edinburgh.
Rank holds a licence in these markets but does not currently operate a casino, according to the report. The commission also recommended that Rank might sell six on its casinos to rectify the situation in order to be able to get the clearance for the takeover.
Martin Cave, deputy chairman of the Competition Commission said, "Our concern is that with two of the national players merging, this will leave a number of areas with much reduced competition where casino customers could consequently lose out through a poorer casino offer."