Rank has recently submitted an updated proposal which will make them the majority owner of casino rival Gala Coral Group. The British gambling giant's proposal has been approved by the Competition Commission so everything is on track to be finalized at any time now.
The deal reportedly has Rank acquiring 19 of the 23 casinos from the original agreement along with three non-operating licenses for a total cost of 179 Million Euro. This will make Rank the largest UK land based casino operator with a total of 54 venues operating under their name.
The online operations of Gala Coral Group were not included in this deal which many people expected would have been a part of the agreement. The investment made into the Gala Coral Group includes about 25 Million Euro over the next two years to help roll-out the “G-Casino” format to several locations and also to upgrade the estates of the existing Gala Casinos.
Rank estimates that when this purchase is fully carried out they will enhance their earnings within the first full financial year after the deal has closed. This also allows them to capture the long-term opportunities of the British casino sector as well as position the company to purchase additional casinos when the right opportunities arise.
With the additional casinos using the “Grosvenor Casino” brand Rank expects the brand awareness to expand much more rapidly than would have been possible without this acquisition. They will accelerate the development of more multi-channel gaming locations and set the stage for exciting opportunities through 2013, 2014 and beyond.