William Hill Crosses MRG Competition Hurdle
Posted on by Sean Williamson
British gambling and sportsbetting giant William Hill has announced that its October 2018 bid to take over the Mr Green group (MRG) in its entirety, is now in the final stages of being signed and sealed. This after the company recently received the necessary approvals from all of the relevant competition authorities.
All that remains now is for MRG to accept or reject the SEK2.8 billion cash deal. MRG has until January 17th to make known its final decision.
Moving Away From FOBT
William Hill was happy to recently report that the deal was now no longer subject to the approval on the parts of any authorities. The operator also confirmed that it would make public MRG’s decision by no later than January 21.
The main reason for William Hill’s bid to take over the Mr Green Group is an effort to minimise its exposure to the highly volatile UK market. Companies trading in the country’s very lucrative FOBT sector are all facing a challenging situation, what with UK authorities having announced that the maximum stake accepted by FOBT devices will soon be reduced from £100 to a very controversial and measly £2.
This is expected to have a huge slam-on effect on FOBT operators all over the country. Those who operate with the FOBT sector as their only source of income will in all probability have to close doors sooner rather than later. William Hill’s decision to diversify appears to be a very forward-thinking one from a business perspective.
Another driving force behind the decision to acquire MRG is the fact that the gambling powerhouse has up until recently, been involved mainly in retail on-site betting. Acquiring a company like Mr Green will provide William Hill with the necessary expertise and resources to greatly expand and improve its digital online offering.
The fact that MRG is headquartered in Malta serves as an additional bonus, especially in a very uncertain post-Brexit era. In-company financial analysts have projected that the company will eventually, after a three-year initial period, reap rewards to the tune of £6 million annually, from the take-over of the Mr Green Group.