The London-based Rank Group has joined forces with online gambling company 888 Holdings to jointly bid for the William Hill bookmaking business, with the proposed deal worth around £3bn.
The management of the two companies forming the consortium have confirmed that there is “significant industrial logic in the combination”, as it would permit the companies to consolidate their online and land-based operations.
They now have until August 21 to make a formal announcement of their intention to make an offer.
William Hill last week lost its CEO James Henderson, who was replaced after failing to improve the performance of the online betting operation. The online business represents around one-third of William Hill’s revenues.
Only a year ago William Hill failed in a £700m bid for 888, while Rank is the biggest operator of bingo halls and casinos in the UK.
Meanwhile Ladbrokes and Gala Coral are waiting for clearance of their £2.3bn merger, which is expected in August after the combined companies agreed to sell off hundreds of their betting shops.
