US casino operator Caesars Entertainment has today agreed to buy British-based gambling group William Hill for £2.9 billion to expand in the fast-growing US sports-betting market.
The US group, owner of Las Vegas's Caesars Palace, intends to sell William Hill's non-US operations, including more than 1,400 UK betting shops.
It said it would integrate the US business into Caesars with few, if any, job losses.
It could sell the UK assets to private equity group Apollo, sources told Reuters this week, and if that failed, launch an auction process.
Shares in William Hill, which already offers sports betting in Caesars casinos in the US, hit a two-year high of 312 pence on Friday after the British company said it had received separate takeover offers from Caesars and Apollo.
With the board backing the deal with Caesars, market pricing now indicates investors expect the 272 pence per share takeover by the US company to go through.
"This is the best option," William Hill Chairman Roger Devlin said.
The deal, which Caesars will partly fund via a $1.7 billion issue of new stock, is a move to take control of - and expand - the companies' US sports-betting joint venture, currently 80%-owned by William Hill.
Long the preserve of informal bookmakers, sports betting in the US is growing rapidly after a landmark ruling in 2018 and gambling companies are reaching out for European expertise to back expansion.
In Britain, William Hill has closed more than 700 betting shops after new regulations limited the maximum stake on lucrative gaming machines.
Its UK rivals include GVC, which owns the Ladbrokes brand, as well as Flutter Entertainment which runs the Paddy Power chain of bookie shops.
Jefferies analysts said the prospect of a bid battle with Apollo had faded due to the threat of Caesars terminating the joint venture if its deal failed.
For the bid to go through, it needs 75% support from William Hill shareholders.
