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31 January 2012
Rank Group, the British gambling giant that owns Mecca Bingo clubs and Grosvenor Casinos, is in talks to purchase the land-based casino operation run by their rival, Gala Coral Group. The Sunday Times newspaper reported that the deal could see Rank put together the UK's biggest land-based casino estate by integrating their own 35 strong Grosvenor Casino chain with Gala Coral's 24 outlets.
“Rank confirms that it is in discussions with Gala Coral Group about a potential acquisition of Gala’s casino business,” said a statement from released by Rank earlier this week.
“The terms of any such acquisition have not yet been finalised and there is no certainty that any transaction will occur. A further announcement will be made in due course.”
If completed, the deal could see Rank purchase the casino arm of Gala Coral for over £250 Million and could even be completed by the time Rank's interim financial results are reported on February 9th. Gala Coral could then focus on their bingo and bookmaking divisions, concentrating on it's finances following a net debt figure of £1.3 Billion at the end of 2011.
Following on from a high profile take over battle, Rank is now 74 per cent owned by Guoco, the Malaysian based gambling group. They have said the consumer outlook for 2012 could be 'more challenging'.
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