William Hill to Take over Mr Green & Co. for £242 Million
William Hill proposed a £242 million takeover deal to Mr Green & Co. online casino and the company is really considering it. Following numerous regulatory changes in the UK, William Hill has decided to stop relying on its home country and start looking for international relationships with the aim of expanding their online presence, especially in Europe.
The proposed deal will give William Hill the opportunity to consider multi-brand strategies in the proper countries, since not only will they get Mr Green, but they will also acquire the RedBet brand.
Why Mr Green & Co.?
William Hill has been working hard during all these years and with Brexit, the tighter regulations and increased taxes, they could lose everything they’ve built over the years. The UK gambling market is facing some stricter restrictions, the Remote Gambling Duty tax increase from 15% to 21% and the FOBTs stake cut from £100 to £2 being the major ones. This puts William Hill in a tough position since it operates under the Gibraltar license, the British Overseas Territory.
On the other hand, Mr Green & Co. holds gambling licenses issued by the authorities of Italy, Malta, Britain, Denmark, and Ireland and will soon obtain its Swedish license for the newly reregulated gambling market. Mr Green successfully operates in 13 countries and for the third quarter, it showed strong results, a revenue increase of 51%.
What Will William Hill Gain from This Deal?
William Hill’s Chief Executive Philip Bowcock said that the deal with Mr Green will open many doors for William Hill, and will accelerate the diversification of the company, making it a more digital and more international gambling business. He expects a strong growth in numerous European countries and says that this deal will provide the company a chance to expand their operations beyond Gibraltar and will benefit the most from the international hub in Malta.
In addition, since they will get both Mr Green and RedBet, two highly popular brands, William Hill will get the chance to start using multi-brand strategies in countries where strategic benefits are possible. The deal will reduce William Hill’s exposure to its home market and will increase its revenue from international gambling operations by more than 7%.
Mr Green’s Move
Since William Hill offered a rather generous premium price of SEK 46.5 this Tuesday, it was reported that the shareholders and Mr Green’s board are considering it. Unless there is a competing offer 8% higher, which is not entirely impossible, they will probably accept it.
Mr Green’s board recommended an approval to the shareholders, but for it to move forward, 90% of those involved with Mr Green & Co. must agree, including one of the three founders Henrik Bergquist. The approval is expected in early December.
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