Competition Commission gives go-ahead to Gala acquisition deal

The Rank Group has been granted permission to acquire Gala Casinos following adherence to recommendations set out by the UK Competition Commission. Three non-operating licenses and 19 terrestrial casinos were acquired by Rank as part of a revised conditional agreement that sees them pay Gala Casino a sum of £179 million.

The go-ahead for the acquisition deal was given after the operator of Mecca Bingo and Grosvenor Casinos confirmed a buyer for its license to operate a Gala casino in Edinburgh. As part of the conditions set by the Competition Commission, Rank were required to find a buyer for its Edinburgh license or the purchase of the Scottish Gala Casino would not be permitted.

Last week, Rank Group confirmed that Global Gaming Ventures Ltd had purchase its license to operate in Edinburgh, ensuring enough financial resources and appropriate industry expertise to operate the establishment. The Commission was satisfied that the deal had met all the required criteria, giving the Gala acquisition the green light.

“It’s very good news that we’ve managed to conclude matters just six weeks after the final report was published,” said Prof Martin Cave, the Chairman of the UK Competition Commission. “All concerned have worked very hard to get this done so quickly and I’m sure the parties will be pleased to be able to press ahead with the deal.”

The deal is now expected to be complete by the third quarter of the current financial year. Ian Burke, the CEO of Rank Group stated: “This acquisition enables us to capitalise on our proven record of operational excellence in the British casino sector and is expected to be earnings enhancing in the first full year of ownership.”

In addition to selling the Edinburgh license, the Competition Commission also required the merger to exclude Gala Casinos in Cardiff, Bristol, Aberdeen and Stockton on Tees, following a review into the initial deal. The four casino establishments were stricken from the deal after the Commission concluded that the acquisition merger between two of the UK’s largest gambling groups would damage competition in the market.

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