A new update has been provided by Rank Group plc regarding its bid for the acquisition of Gala Casinos Limited – this time it warned that the whole deal may be seriously affected by the delays in achieving the Competition Commission’s approval, which is conditional for the acquisition.
Namely, the acquisition agreement has been sent to the UK commission on 20 August 2012 by the Office of Fair Trading, which announced that for this reason the deal will not become unconditional by the initially set September 19, 2012 deadline.
However, what this delay caused is far more serious – due to it, the agreement will cease to be formally binding on both parties at midnight on Wednesday 19 September 2012.
Furthermore, in its update Rank Group Plc said: "Rank and Gala Coral Group are nevertheless continuing to assist the Competition Commission with its inquiry and are continuing their discussions in relation to appropriate amendments to the acquisition terms in the light of the reference to the Competition Commission. A further announcement will be made in due course."