Caesars confirms £2.9bn takeover bid for William Hill

Caesars hopes to close the acquisition in the second half of 2021.
Caesars hopes to close the acquisition in the second half of 2021.

The newly merged US gaming giant has confirmed it will make a bid worth £2.9bn for the UK-based bookmaker.

US.- Caesars has outlined details of its £2.9bn takeover offer for the British bookmaker William Hill in order to expand in the sports betting vertical.

The US gaming giant says it has completed due diligence and will move ahead with an offer of 272.0 pence per William Hill share. The two companies currently have a joint venture in the US offering online and retail sports betting.

William Hill’s board has indicated that it is likely to recommend shareholders accept the offer, which would have to pass antitrust and regulatory approvals.

Caesars says it would expect to complete the transaction in the second half of 2021. Analysts have observed that data sharing as a result of the deal would be hugely beneficial to the operators considering rising acquisition costs.

Caesars’ chief executive, Tom Reeg, said: “The opportunity to combine our land-based casinos, sports betting and online gaming in the US is a truly exciting prospect.

“William Hill’s sports betting expertise will complement Caesars’ current offering, enabling the combined group to better serve our customers in the fast-growing US sports betting and online market.

“We look forward to working with William Hill to support future growth in the US by providing our customers with a superior and comprehensive experience across all areas of gaming, sports betting and entertainment.”

Caesars merged with Eldorado Resorts in July to create the largest casino operator in the US. 

William Hill has also received an offer from the investment fund Apollo Global Management, but Caesars has warned that it could terminate William Hill’s mobile market access in the UK and its right to operate retail sportsbooks at its casinos if Apollo was successful in its bid.

Caesars owns 20 per cent of the joint venture through which William Hill offers online sports betting operations through Caesars’ market access in each state and retail sports betting in Caesars’ properties.

The US operator says its combination with London-based William Hill would increase the latter’s market access in the US and provide a more unified customer experience through the consolidation of applications and wallets.

It said the companies’ combined business would have a “world-class” portfolio and would be able to leverage Caesars’ relationships with teams and events such as the National Football League.

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