UK gambling giants William Hill and Ladbrokes Coral may find themselves locked in a bidding war for the wagering business of their Australian counterpart Tatts Group, according to media reports.
Being one of Australia’s largest gambling companies, Tatts manages the UBET sports betting brand, among others. The wagering division is currently the exclusive provider of retail sports betting services in the Northern Territory, Queensland, South Australia, and Tasmania. It offers betting on harness, thoroughbred, and greyhound racing as well as on a number of sports. Apart from a retail network, UBET also operates a wagering website.
As mentioned above, local media has reported over the weekend that both William Hill and Ladbrokes Coral have expressed interest in buying the betting brand at the time when Tatts is circled by two other suitors – the company’s arch-rival Tabcorp and the Pacific Consortium.
There have been ongoing talks between Tabcorp and Tatts for a potential A$11-billion merger for months now. It is believed that the two Australian giants could complete the deal by the summer of 2017, if all regulatory requirements are met in a timely manner.
It has also become clear earlier this month that a consortium of companies, led by Macquarie and comprised of First State, Morgan Stanley Infrastructure, and Kohlberg Kravis Roberts, has made a A$7.3-billion takeover bid for Tatts, threatening to mar the above-mentioned merger.
It is yet to become clear whether Tatts would chose to create a gambling powerhouse with its long-time Australian rival or would select the Pacific Consortium as its buyer. If a merger between Tatts and Tabcorp takes place, the two companies would put all their businesses under the same roof. If, however, Tatts is sold to the consortium, the latter would likely split the operator’s brands, thus making it possible for other potential buyers to acquire a separate brand of their choice more easily.
It also seems that Ladbrokes Coral and William Hill have lodged interest in the operator’s wagering assets with parties related to the afore-mentioned consortium of investors. These last reports are still to be confirmed.
Both UK bookmakers entered the Australian market back in 2013. Given the recent announcements that the local government is to implement stricter regulations on online gambling operations, particularly ones provided by offshore operators, it should not come as a big surprise that William Hill and Ladbrokes Coral are looking for ways to solidify their presence Down Under.
The two gambling giants will certainly look to establish deeper roots in the lucrative Australian market now that their position there may be in jeopardy.
