U.S. casino operator Caesars Entertainment agreed on Wednesday (September 30) to buy British-based gambling group William Hill for $3.7 billion.
The aim is to expand in the fast-growing U.S. sports-betting market.
Now the U.S. group, which owns Las Vegas hotel Caesars Palace, intends to sell William Hill's non-U.S. operations, including more than 1,400 UK betting shops.
It said it would integrate the U.S. 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 on Friday (September 25) on reports of the deal, though they later fell back.
It followed the British company saying it had received separate takeover offers from Caesars and private-equity group Apollo.
With the board backing the Caesars deal, market pricing now indicates investors expect the 272 pence per share takeover by the U.S. company to go through.
Caesars will partly fund the deal via a $1.7 billion issue of new stock.