UK gambling operator William Hill has been approached for a gambling merger by its fellow gambling operators 888 Holdings and The Rank Group. Just two days ago, Casino UK wrote in the blog that 888 Holdings and The Rank Group stated that they haven’t officially approached William Hill about the merger.
According to BBC News, William Hill commented and say it will listen to and consider any proposal. However, it’s still not clear if the merger of 888, The Rank and William Hill will deliver superior value.
Online gambling operators 888 and The Rank will form the biggest chain in the UK. The two companies said they saw an important industrial logic in the merger. 888 and The Rank said they had not yet made a formal bid to the operator’s board, while William Hill said in a statement that the merger approach was highly preliminary.
The Rank Group lost 0.5% shares while William Hill shares rose 4.8% and 888 Holdings increased 3.4%.
William Hill CEO James Henderson Ousted
The move comes a few days after William Hill fired Chief Executive Officer James Henderson for struggling to deliver enough growth in the fast-moving world of online gambling. According to reports, Mr. Henderson took the post in August 2014 and failed to resolve problems in the provider’s struggling online betting business.
The company also reported in May that they had lost 11% revenue in their online business in the 17 weeks to 26 April 2016. Since the beginning of 2016, the company’s shares have fallen 21%, valuing the former FTSE 100 firm at £2.7 billion.