Rank Group could be required to sell several of the 23 casinos it agreed to buy from Gala earlier this year, the Competition Commission announced this morning.
The Commission has provisionally found that the acquisition could damage competition in six areas of the UK – Aberdeen, Liverpool, Stockton-on-Tees, Bristol, Cardiff and Edinburgh.
The Office of Fair Trading referred the case to the Commission in August, and although the deal subsequently lapsed, the parties have confirmed that they are still pursuing the merger. Rank and Gala are two of the three large national casino operators in the UK. Following the merger, there would be only two large national casino operators, Rank and Genting.
Chairman of the Rank/Gala inquiry group and Commission deputy chairman Professor Martin Cave said: “Our concern is that with two of the national players merging, this will leave a number of areas with much reduced competition where casino customers could consequently lose out through a poorer casino offer.
“We are now going to look at the most effective way to preserve competition in these areas and whether this can be achieved in a way that allows an amended version of the deal to go ahead.”
The Commission is expected to publish its final report by 20 February 2013.
samantha.mcclary@estatesgazette.com
