Casino Merger Threatened By Competition CommissionRank Plc And Gala Casino Deal Referred For Investigation |
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Rank Plc, owner of Grosevenor Casino, the Grosvenor UK Poker Tour, and Blue Square, suffered a blow yesterday as the UK’s Office of Fair Trading referred its proposed acquisition of Gala Casinos to the Competition Commission for further investigation.
The OFT says it is concerned the merger “will substantially reduce competition in the casino sector.”
Rank is prepared to pay £205 million for Gala Casinos which would include taking control of 23 casinos from parent company Gala Coral.
OFT Senior Director and Decision Maker, Ali Nikpay, said, “Rank and Gala are two of only three large national casino operators in the UK. This merger would represent a major consolidation which could be expected to reduce competition, both locally and nationally. The high barriers to entry and expansion in the casino sector mean the loss of competition could potentially be irreversible.
“As such, we believe it is appropriate that the Competition Commission reviews this merger in detail to ensure that the interests of consumers are protected.”
The Competition Commission report is expected to be published by 3 February 2013.
Genting is the other casino group in the top three in the UK.
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