The Competition Commission has told Rank that it must dispose of as many as six casinos if it wants to complete the takeover of rival Gala. The leisure giant is keen to revive the £205 million deal that has been on hold since May and has already agreed to the sale of five of the properties.
Ranks’ original bid was for 23 Gala Casinos and the rights to operate three others which have not yet been built, but the Commission’s provisional report expresses fears that the move could damage competition in several locations.
Deputy Chairman of the Commission, 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.”
These locations are Aberdeen, Liverpool, Stockton-On-Tees, Bristol and Cardiff. Concerns have also been expressed about Edinburgh where Rank holds the rights to open a casino but has not yet done so.
The Commission says it will now look at ways the deal might be allowed to go ahead while preserving competition in these areas. If it is still not satisfied it has the power to block the merger. Their final report is due in February.
Meanwhile, in other leisure property news, Paragon Entertainment has signed a ten year deal for the rights to the Hammer House of Horror brand. The deal gives the company access to classic Hammer films such as Brides of Dracula and Curse of Frankenstein.
It is now seeking potential sites in central London, and throughout the country, to build themed Hammer House of Horror visitor attractions which, a spokesman said, will be unique and “take Paragon to a new level.”
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