Several news outlets are reporting that The Rank Group and 888 Holdings are considering a merger of sorts to consolidate their resources, coming together to bid on the struggling William Hill Company. Both companies are reportedly entering the final stages of discussing a consolidation with the two to announce their merger possibly by tomorrow.
The Rank Group is responsible for the largest chain of land based gambling venues in the United Kingdom, known as Grosvenor Casinos as well as operating other entities including Mecca Bingo. 888 Holdings is a company based in Gibraltar who is known for offering online gambling including poker and casino. The company operates in several jurisdictions including in the United States via Delaware, New Jersey and Nevada.
Sources such as the Racing Post have 888 Holdings and the Rank Group merging to create a £3 billion joint bid for William Hill. The two companies are reportedly hoping to purchase William Hill who has been struggling since last year, seeing share prices drop significantly since this March.
A statement was issued by both companies on the matter which read that the consortium sees significant industrial logic in the combination with the consolidation of the online and land based operations with the delivery of substantial revenue and cost synergies as well as the anticipated benefits of economies of scale which will accrue for all shareholders. As far as the proposed transaction, both companies have stated that no decision has been made as of yet as to if 888 would be an offer or an offeree company in regards to the steps that will need to be taken for the implementation of the proposed transaction.