Genting Acquires 9.4% Stake in Rank Group
4th December, 2007
It became clear on Monday that Malaysian Gaming Giant, Genting, is slowly becoming unbeatable. It has now taken 9.4% in Rank Group, which owns the Grosvenor Casino chain, and is responsible for Casino and Mecca Bingo.
Genting started penetrating UK casino market in 2006 when it bought the biggest fish in the UK casino ocean– Stanley Leisure. Genting paid £640 million for this purchase.
If Genting was to team up with Rank that already has 45 casinos, would undoubtedly give the group an obvious leadership with great monopolistic powers. They would have a total of 91 casinos if that was to take place. This is why analysts say the Giant will most likely face serious obstacles and restrictions to such move mainly due to potential complications with getting a regulatory approval to carry out a deal of this kind.
Rank’s recent unpleasant profit margin reports created a lot of speculations about the possible takeover, which hit the shares of the company dramatically. Primary reasons for the slump in share prices faced by Rank are the recent changes in restrictions and legislations in UK. Smoking ban as well as obligatory removal of slot machines has made Rank’s bingo business suffer greatly. The casino business was hit hard by this year’s unexpected Texas hike
