Apollo Global Management, (NYSE: APO) is believed to be in a position to win William Hill’s International business. But reports indicate that Entain Plc (OTC: GMVHY) might be considering a bid.
Caesar Entertainment (NASDAQ: CZR) acquired William Hill for $3.7 billion this year. But the Las Vegas-based casino operator wants to shed its non-US assets. Caesar has already started auctioning its UK 1, 400 shops and its European online gaming unit.
Apollo appears to be well-positioned to win the bid. The private equity giant last made a run at William Hill as a whole but Caesar’s made leverage with the British company relating to US sports partnership, threatening to cancel the deal if they opted for another offer. Apollo made its intention clear- not to focus on the US market.
Apollo has full knowledge of William Hill assets that Caesar wants to sell. The company also has deep pockets and can easily afford Caesars’ quoting. William Hill’s international assets are rumored likely to fetch $2 billion or more.
Apollo sees a potential match between William Hill’s European operations and its gaming holding. The company is, however, likely to face a lot of competition for William Hill assets. That includes 888 Holdings, Entain, Betfred, Betsson, and Kindred.
Entain specifically could easily make a run at the William Hill assets. However, the company already has a considerable market share in the UK, and such a move could raise regulatory concerns.
