Rank agreement to buy Gala expires at midnight

Rank Group said its current deal to buy Gala Casinos would expire at midnight after delays caused by a competition investigation.

The £205m acquisition from Gala Coral Group, which includes 23 casinos in the UK, was dependent on the firms getting clearance from competition authorities by September 19.

But 20 August the Office of Fair Trading announced it had referred the deal to the Competition Commission.

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"Accordingly, the acquisition will not become unconditional by September 19...and therefore the agreement relating to the Acquisition will cease to be formally binding on the parties at midnight," Rank said.

"Rank and Gala Coral Group are nevertheless continuing to assist the Competition Commission with its inquiry and are continuing their discussions in relation to appropriate amendments to the acquisition terms in the light of the reference to the Competition Commission," it added.

A further announcement will be made in due course.