The leading UK-based bookmaker William Hill has been having negotiations with the Canadian online gambling company Amaya over an eventual merger that would turn the combined company in an gambling giant with a market share of £4.5 billion.
William Hill confirmed that the two companies have been having talks to create a leader in the online gambling industry on a global scale. Still, no matter that both companies have declared their interest towards an eventual merger, both of them emphasized on the fact that no deal has been reached yet. However, reaching an agreement could happen within weeks and if a deal is processed, the structure of a reverse takeover of the British company would be used. In case that the deal is finalised, the newly-formed entity is expected to be listed on the London Stock Exchange.
Recently, Amaya has been a subject of interest to a number of private equity firms and other companies, but most market experts believe that William Hill is the company with the best chances to strike a deal with the Canada’s online gambling operator. The company provides a variety of product gaming and interactive entertainment products and services and has been trying to diversify its offerings lately.
The negotiations between the two companies come at a moment when a large number of deals have been made in the industry. In addition, both William Hill and Amaya have been facing some difficulties lately, which is why their merger is considered as a perfect outcome for both of them, especially considering the fact that each of the companies has been focused on making a major deal.
Currently, regardless of the fact that William Hill is one of the leading retail bookmakers on the territory of the UK by number of shops, it has been suffering the effects of tighter regulation and new taxes imposed, along with fierce competition by online rivals. Canada’s Amaya, on the other hand, is the company which owns and runs the largest online poker brand on a global scale – Pokerstars. The online gambling operator, however, has also been facing some troubles lately, as its efforts to enlarge its sports betting business has not made the desired progress, so the company did not manage to diversify its offerings.
Further progress of the negotiations between the two companies is expected.
- Author
Olivia Cole
